The Indian rupee concluded the day with a gain of 2 paise, against the US dollar on Tuesday thanks to the performance of the stock markets in the country. The rupee’s closing rate improved to 83.26 per dollar compared to its value of 83.28. At the time the dollar index, which measures the strength of the dollar against six currencies, increased slightly by 0.09% and reached 106.33.
Traders observed that despite conflicts in the Middle East and a strong US dollar there was a positive trend for the rupee due to optimistic market sentiment within India. It is worth noting that on Monday the rupee had reached its closing rate against the US dollar at 83.28.
Analysts predict that with an increasing appetite for risk in markets and a decline in crude oil prices there is potential for a slight positive bias for the rupee. Moreover diplomatic efforts to ease tensions in the Middle East could further support risk assets. However it is important to consider that significant gains for the rupee may be curtailed by factors such as continued strength of the US dollar and any further escalation of tensions between Hamas and Israel. In terms of oil prices Brent crude rose by 0.29% to $89.91 per barrel while US West Texas Intermediate saw an increase of 0.17% reaching $86.81, per barrel.
Indian benchmark stock market indices ended the day on a note breaking a three day streak of losses.