The Indian rupee on Thursday opened stronger against the US dollar amid declining oil prices and reduced tensions between the United States and Iran.
The rupee was trading 32 paise higher at 94.93 against the US dollar after witnessing a fall on Wednesday. Besides, the currency was aided by the decline of oil prices and progress in US-Iran talks, though currency traders remain watchful of a rising dollar and treasury yields.
Earlier on Wednesday, the rupee declined by more than 60 paise during intraday trade and closed at 95.25, its worst level in three weeks.
The currency came under pressure, breaching the record level of 95 against the US dollar after a month.
Despite positive FII inflows and lower crude oil prices, the rupee weakened sharply. If the rupee cannot strengthen on good news, any negative development could easily push USDINR towards the Rs 95.80 – Rs 96.00 zone.
On the other hand, Brent crude, an international benchmark, was trading near $70 a barrel after the US and Iran noted a positive outcome in the recently concluded peace talks facilitated and mediated by Qatar and Pakistan.
The discussions, according to Qatari officials, focused on de-escalation and safe passage of ships and vessels in the Strait of Hormuz, a key energy shipping route.
Oil prices have dropped significantly, by around 40 per cent, ever since the peace deal between the US and Iran was announced.
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