Guwahati: The Indian rupee gained 65 paise to reach 86.13 against the US dollar in early trading on Tuesday, June 24, 2024, driven by a drop in crude oil prices amid hopes of a ceasefire between Iran and Israel. According to market reports and forex sources, the rupee’s rise was also supported by a weaker US dollar and a positive opening in domestic equity markets.
Brent crude, the global oil benchmark, fell 2.73 percent to USD 69.53 per barrel in futures trading after US President Donald Trump announced that Iran and Israel were nearing a ceasefire.
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The Indian currency opened at 86.07 against the dollar in the interbank foreign exchange market and later strengthened to 86.13, 65 paise higher than the previous close. On Monday, June 23, the rupee had dropped 23 paise to end at a five-month low of 86.78.
“Trump’s statement about the ceasefire, though not yet confirmed by Iran, has influenced the market, pushing oil prices below USD 70,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
He added, “Following the ceasefire news, USDINR moved close to the 86.00 mark and opened at 86.07. The market now looks forward to Federal Reserve Chair Jerome Powell’s testimony on Tuesday and Wednesday, which could hint at potential interest rate cuts.”
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Meanwhile, the dollar index, which tracks the greenback’s strength against six major currencies, was down 0.29 percent at 98.13.
Indian stock markets also recovered from Monday’s losses, with the Sensex jumping 930.7 points to 82,827.49 and the Nifty climbing 278.95 points to 25,250.85.
However, according to exchange data, foreign institutional investors (FIIs) sold equities worth Rs 1,874.38 crore on a net basis on Monday.