The Indian rupee closed stronger on Monday, supported by a weak US dollar and an easing in Brent crude oil prices following ceasefire talks between Israel and Iran-backed Hamas.
The rupee appreciated 8 paise to close at Rs 83.87 after opening at Rs 83.89 against the US dollar, according to Bloomberg data. The local currency closed at Rs 83.95 on Friday.
Oil prices continued their declining streak in the US-led efforts to secure a ceasefire in the conflict between Israel and Iran-backed Hamas in the Gaza Strip.
Israel initially voiced cautious optimism over the prospect of a pause in the fighting, but fresh disagreements are surfacing, according to a Bloomberg report. Furthermore, China's economic concerns had an impact on the market.
Brent Crude was trading at $79.00 with a downturn of 0.85% as of 3:41 p.m. IST, and the and the Dollar Index was at 102.22 with a downturn of 0.24% as of 3:42 p.m. IST.
The West Texas Intermediate was initially below $77, while the Brent Crude was down 11% to $79.59 as of 9:11 a.m. The dollar index was down 0.20% at 102.25.
Amit Pabari, managing director of CR Forex Advisors, largely credited the stability of the rupee to timely interventions by the Reserve Bank of India.
Exporters need to wait for Rs 83.96 to sell their near-term dollar receivables, while importers can buy dollars at the current dip to hedge near-term payables, said Anil Kumar Bhansali, head of Treasury and executive director of Finrex Treasury Advisors LLP.
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