Rupee settles at 93.93 against US dollar amid softer crude prices

Mumbai, Nov 9 (PTI): The rupee settled higher by 5 paise at 93.93 (provisional) against the US dollar on Monday, boosted by easing crude oil prices, stronger foreign fund inflows and optimism over de-escalation in West Asia.

Forex traders said continued foreign inflows, stable crude oil prices and a mild dollar offered tailwinds for the rupee. However, gains were capped by renewed demand for the greenback, geopolitical risks and a rebound in energy prices.

In the interbank foreign exchange market, the rupee opened at around 93.85 against the greenback and touched an intraday high of 93.69 and a low of 94.11. At the end of the session, it was quoted at 93.93 (provisional), up 5 paise from its previous close.

On Friday, the rupee had surged 43 paise to close at 93.98 against the US dollar.

“The Indian rupee registered a technical retracement, snapping a five-day winning streak amid state-run bank dollar buying ahead of a market holiday. The intraday correction followed morning gains catalysed by a soft dollar index, resilient foreign institutional inflows, and weaker crude oil pricing,” said Dilip Parmar, Senior Research Analyst, HDFC Securities.

Market participants are now closely monitoring Tuesday’s upcoming US inflation data for fresh directional cues. In the near term, spot USD/INR finds key support at 93.50 and resistance at 94.30, he added.

Over the weekend, encouraging news came from West Asia, as US President Donald Trump indicated that fresh military strikes against Iran were highly unlikely if negotiations progressed and both sides reached a strong agreement.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.83, down 0.45 per cent.

Brent crude, the global oil benchmark, was trading 0.80 per cent lower at USD 97.53 per barrel in futures trade.

“Overall, the near-term outlook remains moderately positive for the rupee, with USD/INR likely to remain sensitive to global dollar movements, crude oil trends and RBI intervention,” said Gaurav Garg, Head of Research, Lemonn.

Foreign institutional investors (FIIs) purchased equities worth Rs 13,749.82 crore on Friday, according to exchange data.

Meanwhile, India’s forex reserves declined by USD 2.691 billion to USD 717.056 billion during the week ended October 30, the RBI said on Friday.