The Indian currency appreciated by 24 paise to 93.74 against the US dollar in Monday’s early trading, according to The Hindu BusinessLine. The exchange rate opened near 93.85 before moving higher, reversing part of the previous day’s weakness. On Friday, the rupee had strengthened by 43 paise to finish at 93.98, setting the baseline for Monday’s movement.
Forex participants attributed the recent strength to declining crude oil prices and steady foreign capital inflows. The Hindu BusinessLine noted that diplomatic progress in West Asia, including remarks by US President Donald Trump suggesting that fresh military strikes on Iran are unlikely if talks advance, has reduced the risk premium embedded in energy contracts. This shift in geopolitical expectations has provided direct support to the Indian currency.
Amit Pabari, Managing Director of CR Forex Advisors, explained that improved diplomatic outlooks are already visible in energy markets. He pointed out that Brent crude, which had previously reached approximately $117.64, has now fallen below $100 and is trading near $98. Pabari added that the prospect of a durable agreement is crucial for currency market sentiment.
Foreign institutional investors bought Indian equities worth ₹13,749.82 crore on Friday, per exchange data cited by The Hindu BusinessLine. The Reserve Bank of India reported that the country’s forex reserves declined by $2.691 billion to $717.056 billion in the week ending October 30. Meanwhile, the dollar index, a measure of the US currency’s value against a basket of six peers, stood at 102.18, down 0.12 percent.
In early Monday trade, the Sensex declined 93.95 points to 80,919.19, and the Nifty dropped 30 points to 24,968.80. Pabari suggested that with the USD/INR pair falling under 94.00, the likelihood of further rupee gains toward 93.50 and 93.00 has risen, while the 94.40–94.50 range is expected to serve as near-term resistance.