Rupee Gains 2 Paise to 91.62 Against US Dollar After US Allows 30 Day Waiver for Russian Oil Purchases
Rupee Opens Steady Amid Easing Energy Supply Concerns
The Indian rupee remained largely stable on Friday and strengthened by 2 paise to 91.62 against the US dollar in early trade. The marginal gain came after the United States announced a 30 day waiver allowing Indian refiners to purchase Russian oil that is currently stranded at sea, easing concerns around global energy supply disruptions amid tensions in West Asia.At the interbank foreign exchange market, the rupee opened at 91.64, the same level as its previous close, before improving slightly to 91.62 against the American currency.
US Waiver for Russian Oil Supports Market Sentiment
The move follows a temporary policy decision by the US administration as the conflict involving the United States, Israel, and Iran continues to escalate. The waiver is intended to ease pressure on global energy markets and maintain supply stability.US Treasury Secretary Scott Besant said on Thursday that the temporary measure would help reduce pressure caused by Iran's attempt to control global energy supplies.
The announcement provided some support to the rupee as it eased concerns around potential disruptions to energy imports.
Domestic Market Weakness Limits Rupee Gains
Despite the modest strengthening of the rupee, forex traders noted that gains were capped by weakness in domestic equity markets and continued outflows by foreign investors.On the equity market front, benchmark indices were trading lower in early deals. The BSE Sensex declined 388.23 points, or 0.49 percent, to 79,627.67, while the NSE Nifty dropped 118.30 points, or 0.48 percent, to 24,647.60.
Exchange data showed that foreign institutional investors remained net sellers on Thursday, offloading equities worth ₹3,752.52 crore.
Dollar Weakens While Oil Prices Ease
The US dollar index, which tracks the greenback against a basket of six major currencies, was trading 0.37 percent lower at 98.94.Meanwhile, Brent crude, the global oil benchmark, declined 1.05 percent to $84.51 per barrel in futures trading.
Previous Session Movement
The rupee had recovered 41 paise to settle at 91.64 against the US dollar on Thursday. The rebound followed a sharp decline of 97 paise over the preceding two sessions.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.