Rupee Gains 14 Paise to Close at ₹94.36 Against USD

Rupee Rises 14 Paise to Close at 94.36 Against USD Amid Positive Global and Domestic Cues

The Indian rupee gained 14 paise to settle at ₹94.36 (provisional) against the U.S. dollar on Thursday, recovering from earlier losses. The appreciation came as global market sentiments improved following the electronic signing of a peace agreement between the U.S. and Iranian Presidents. The memorandum of understanding aims to end hostilities and establish a framework for negotiations on Iran's nuclear programme, boosting risk appetite in global markets.

At the interbank foreign exchange market, the rupee opened weaker at ₹94.66 against the dollar but traded within a range of ₹94.18 to ₹94.71 during the day. It eventually closed at ₹94.36, marking a 14-paise rise from its previous close. On Wednesday, the rupee had appreciated by 10 paise to settle at ₹94.50 against the greenback.

Forex traders noted that falling oil prices provided additional support to the rupee. Brent crude, the global oil benchmark, was down 2.33% to trade at $77.70 per barrel in futures trade. Additionally, foreign inflows into Indian markets remained supportive, contributing to the positive outlook for the rupee.

However, the upside for the USD/INR pair was capped by the broader strength of the U.S. dollar in overseas markets. The dollar index, which measures the greenback's strength against six major currencies, rose 0.51% to 100.59. The U.S. Federal Reserve's hawkish stance also limited gains, as it held interest rates steady but signaled at least one quarter-point rate hike later this year.

On the domestic front, equity markets showed robust performance, further buoying investor sentiment. The Sensex climbed 254.36 points to close at 77,409.98, while the Nifty advanced 82.30 points to settle at 24,168. Foreign institutional investors turned net buyers, purchasing equities worth ₹101.59 crore on Wednesday.

Looking ahead, analysts expect the rupee to maintain a positive bias, supported by improved global risk appetite following the U.S.-Iran agreement and favorable oil price trends. However, any recovery in the U.S. dollar or U.S. treasury yields amid the Federal Reserve's hawkish stance could weigh on the rupee's gains.