Rupee Strengthens as Oil Prices Plummet and Dollar Weakens

The Indian rupee strengthened against the US dollar in early trade on Monday, rising 31 paise to 95.12. The gain comes after US President Donald Trump decided to hold off on ordering strikes against Iran, which helped lower Brent crude oil prices and a weaker dollar.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, the rupee's support also came from sustained foreign portfolio inflows and continued RBI presence in the foreign exchange market. The rupee stayed in positive territory for the fifth consecutive day on Friday, gaining 7 paise to settle at 95.43 against the US dollar.

The country's forex reserves jumped $6.118 billion to $682.354 billion during the week ended July 24, according to RBI data released on Friday. The central government's fiscal deficit stood at 18.2% of the full-year target at the end of June.