Indian rupee slightly gains amid falling oil prices

The Indian rupee strengthened slightly on Wednesday due to lower oil prices and positive regional currency performance. Traders were also anticipating the Reserve Bank of India‘s (RBI) monetary policy decision.

At 9:30 AM IST, the rupee was trading at 83.9275 compared to its previous close of 83.9625. While the currency has hovered near its record low of 83.9850 in recent sessions, the RBI’s interventions have prevented it from falling below that level.

Other Asian currencies, including the Thai baht, which gained 0.6 per cent, were generally higher. The dollar index remained relatively unchanged at 102.5.

Brent crude oil futures declined by 4.5 per cent on Tuesday due to news of a potential ceasefire between Israel and Hezbollah, easing concerns about supply disruptions. The oil price was slightly higher at $77.4 per barrel at the time of this report.

Despite favourable global factors, traders anticipate that the rupee’s gains will be limited due to persistent outflows from local equities. Overseas investors have net sold approximately $6.5 billion of shares over the past six trading sessions.

Attribution: Reuters

Subediting: Y.Yasser