Rupee recovers 20 paise against US dollar on easing crude prices

The rupee appreciated 20 paise to 93.15 against the US dollar in early trade, supported by softer crude oil prices and a weaker dollar. Improved sentiment also followed renewed hopes of US-Iran talks, boosting domestic equity markets.

Mumbai: The rupee recovered 20 paise to 93.15 against the US dollar in early trade on Wednesday, backed by lower levels of crude oil prices and a weak American currency amid hopes of resuming US-Iran peace talks.

Investor sentiment turned positive after US President Donald Trump said that a second round of talks with Iran could be held “over the next two days”.

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The latest remarks, which came days after the two sides failed to reach a peaceful resolution to the conflict in West Asia, led to a sharp decline in crude oil prices, boosting the risk appetite for market participants, forex analysts said.

At the interbank foreign exchange market, the rupee opened at 93.19 against the US dollar and gained further, trading at 93.15 against the greenback in early deals, up 20 paise from its previous closing level.

On Monday, the rupee weakened by 52 paise to settle at 93.35 against the US dollar. The forex market was closed on Tuesday on account of Baba Saheb Ambedkar Jayanti.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was marginally higher by 0.04 per cent at 97.95.

Brent crude, the global oil benchmark, was trading 0.57 per cent up at USD 95.33 per barrel in futures trade.

On the domestic equity market front, the stock markets witnessed a steep surge in the morning trade. The 30-share Sensex jumped 1162.04 points or 1.51 per cent to 78,009.61, while the Nifty climbed 348.65 points or 1.46 per cent to 24,191.30.

Foreign Institutional Investors were net sellers on Monday and offloaded equities worth Rs 1,983.18 crore, according to exchange data.