The Indian rupee strengthened 20 paise against the US dollar on Tuesday, September 22, closing at 95.58 on a provisional basis. The currency gained support from a sharp decline in crude oil prices and improved sentiment across global markets.
Forex traders said the rupee benefited from lower oil prices amid reports pointing to the possibility of diplomatic efforts to ease tensions surrounding the US-Iran conflict.
Brent crude, the global oil benchmark, was trading 1.14% lower at $99.20 per barrel in futures trading. The decline in crude prices provided support to the rupee, given India’s dependence on imported oil.
Market sentiment also improved following reports that Iran could consider reopening the Strait of Hormuz within seven days if the US lifts its port blockade and reduces military pressure in the region.
The rupee’s latest move comes amid heightened volatility in currency and commodity markets as investors track developments in the Middle East and their potential impact on energy prices.
The domestic currency had faced pressure in recent sessions, making Tuesday’s appreciation notable as easing crude prices offered some relief to the Indian currency.
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