The Indian rupee staged a modest rebound on Monday, closing 11 paise higher at ₹88.66 against the US dollar, supported by positive cues from domestic equity markets and easing global crude oil prices.
At the interbank foreign exchange market, the local currency opened stronger at ₹88.71 and touched an intraday high of ₹88.62 before finally settling at ₹88.66, marking an improvement from Friday’s closing of ₹88.77.
Key Drivers Behind the Rupee’s Rebound
Analysts attributed the rupee’s recovery to multiple factors, including a correction in crude oil prices, foreign fund inflows, and a stable US dollar index.
Market experts noted that investors remained optimistic following fresh buying in equities, which lent support to the local currency.
“The rupee recovered on improved risk appetite and positive equity flows. However, global uncertainties and dollar demand from importers kept the upside limited,” said a forex analyst.
Global Factors and Market Outlook
Globally, the US dollar index, which tracks the greenback against six major currencies, traded nearly flat around 105.2, while Brent crude oil hovered near $82 per barrel, easing pressure on India’s import bill.
Traders expect the rupee to remain range-bound in the coming sessions as markets await cues from the US Federal Reserve’s policy signals and upcoming domestic economic data releases.
Domestic Market Snapshot
On the domestic front, both the BSE Sensex and NSE Nifty ended the session higher, reflecting improved investor sentiment. Strong foreign portfolio inflows (FPIs) also contributed to the rupee’s stability.
❓ FAQs
1. What was the closing value of the rupee against the US dollar today?
The rupee settled at ₹88.66 per US dollar, gaining 11 paise from the previous close.
2. Why did the rupee strengthen today?
The rebound was supported by lower crude oil prices, stronger domestic equities, and foreign inflows.
3. What is the outlook for the rupee in coming days?
Analysts expect the rupee to trade in a narrow range amid global and domestic economic cues.
4. How does crude oil affect the rupee?
Higher crude oil prices increase India’s import bill, weakening the rupee, while lower prices often support its recovery.
Published on : 4th November
Published by : SMITA
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