Rupee Climbs 2 Paise to Close at 94.49 Against US Dollar, Extending Winning Streak to Six Sessions
Key Takeaways
- •The rupee closed two paise higher at 94.49 per US dollar, marking its sixth consecutive session of gains.
- •Positive foreign investment flows and stronger risk appetite among investors supported the currency's advance.
- •Rising crude oil prices and US-Iran tensions could limit further appreciation of the rupee.
- •Higher global oil costs raise India's import bill and can widen the trade deficit, weighing on the currency.
- •Traders are watching upcoming US non-farm payroll data as a key signal for future market direction.
The Indian rupee strengthened by two paise to close at 94.49 against the US dollar, supported by positive foreign investment flows and a greater appetite for risk among investors. The gain marks the sixth consecutive session of appreciation for the currency.
Despite the upward momentum, factors that could limit further gains remain in view. Rising crude oil prices and ongoing tensions between the United States and Iran may hinder additional appreciation of the rupee, according to the report. India imports the bulk of its crude oil requirements, so higher global oil prices increase the country's import bill and can weigh on the currency by widening the trade deficit.
With the currency on a six-session winning streak, traders are now watching upcoming US non-farm payroll data as a key indicator for future market trends. US jobs data is closely tracked as an input to Federal Reserve policy expectations, which in turn influence the dollar's strength against emerging-market currencies such as the rupee.
Source: Economic Times Markets
