The Indian rupee strengthened by 21 paise to 90.73 against the US dollar in early trade on Monday, supported by a sharp decline in global crude oil prices and a weaker dollar amid fresh uncertainty over US tariff measures.
At the interbank foreign exchange market, the rupee opened at 90.76 and advanced further to 90.73, marking a recovery of 21 paise from its previous close of 90.94. The domestic currency had fallen 26 paise on Friday.
Crude Oil Prices Ease, Supporting the Rupee
Global oil benchmark Brent crude declined 1.09 per cent to USD 70.98 per barrel. Lower crude prices typically ease pressure on India’s import bill, offering support to the rupee.The dollar index, which measures the US currency against a basket of six major peers, was down 0.33 per cent at 97.47. The decline followed renewed concerns after US President Donald Trump raised tariffs to 15 per cent, creating uncertainty in global markets.
According to market participants, most Asian currencies also gained compared to their Friday close as the dollar weakened.
Strong Domestic Equities Add Momentum
A firm opening in domestic equity markets further strengthened sentiment around the rupee.The BSE Sensex surged 621.78 points to 83,436.49 in early trade, while the NSE Nifty climbed 180.05 points to 25,751.30.
Despite the positive momentum in equities, foreign institutional investors offloaded shares worth Rs 934.61 crore on Friday, as per exchange data.
Forex Reserves Hit Record High
Additional support for the rupee came from a significant rise in India’s foreign exchange reserves. According to the Reserve Bank of India, forex reserves jumped USD 8.663 billion to reach a new all-time high of USD 725.727 billion in the week ended February 13.The combination of easing crude oil prices, a softer dollar index, robust equity markets, and record-high forex reserves helped the rupee stage a strong opening at the start of the week.
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