Rupee Gains As Falling Crude Prices Offer Respite Amid Global Trade Tension
The Rupee strengthened by 3 paise to open at 87.24 against the US Dollar, according to Bloomberg.
The Indian Rupee opened stronger on Wednesday as the continued fall in crude oil prices offered relief amid the escalating trade war set off by US President Donald Trump.
The Rupee strengthened by 3 paise to open at 87.24 against the US Dollar, according to Bloomberg. The domestic currency closed at 87.27 against the greenback on Tuesday.
Consistent outflows by global funds in domestic equities is also putting pressure on the currency. In 2025 so far, they have net sold equities worth Rs 1.29 lakh crore, NSDL data showed.
On the domestic front, the rupee traded in a narrow range caught between global uncertainty driven by the trump factor, according to Amit Pabari, managing director of CR Forex Advisors.
However, falling crude oil prices — trading at a three-month low — provided some respite for the Indian currency, Pabari said. The Brent crude was down 0.34% at $70.80 a barrel as of 9:15 a.m. IST, and the West Texas Intermediate was down 0.85% at $67.68.
Rupee is expected to trade in 87.20-87.80 range, Pabari said. "With 87.20 acting as a strong support, while 87.80 will act as a strong resistance."
Stocks in the Asia Pacific region traded mixed in early trade on Wednesday on the tariff relief signal, after President Donald Trump sparked a global selloff.
Canada and China responded to Trump with retaliatory measures after the US decided to proceed with levies against Canada and Mexico on Tuesday. Meanwhile, China's commerce ministry "strongly" opposed the tariff measures and "hoped" that the US would handle issues objectively and rationally.
