The Indian Rupee started the day with a strong performance on Tuesday because global crude oil prices experienced a significant drop. The rupee started its trading session at ₹86.11 against the US dollar after reaching a previous close of ₹86.75. The rupee experienced its biggest opening gain since May 13 but its June performance remains negative at 0.61%.
The significant decrease in oil prices served as the main factor which improved the value of the Indian rupee. Brent crude prices decreased by 2.48% to $69.71 per barrel while WTI crude prices fell by 2.58% to $66.74 at 9:05 AM IST. The Indian economy benefits from lower oil prices because it imports most of its crude requirements which reduces pressure on the rupee.
The US dollar index declined by 0.28% to 98.13 which enhanced the appeal of emerging market currencies including the Indian rupee. The rupee will likely maintain its current trading level of ₹86.15 according to analysts who expect positive risk-on sentiment to continue. The market waits for US Federal Reserve Chair Jerome Powell to testify because his statements will reveal potential rate cut directions.
