The Indian rupee opened on a positive note, jumping 40 paise to 95.20 against the US dollar in early trade on Monday. The recovery was led by fresh optimism in global markets of a possible peace deal between the United States and Iran to de-escalate a nearly three-month long conflict. At the interbank foreign exchange market, the local currency opened at 95.36, then touched 95.20, up 75 paise from Friday’s close.
Market sentiment got a boost from positive developments on the bilateral trade front, as US Secretary of State Marco Rubio, during his visit to India, said Washington and New Delhi were close to reaching an interim trade deal that is likely to further their mutual economic interests. Analysts said that with Monday being a US holiday, cash dollar demand was relatively low, but typical month-end requirements may still come into the market. The Reserve Bank of India (RBI) is likely to keep a close watch on the currency movements.
Support also came from a weaker greenback, with the dollar index down 0.20% to 99.04. At the same time, global oil marker Brent crude slipped 5.43% to $97.92 a barrel giving some relief to India’s import bill. This macroeconomic boost triggered a wave of positivity on Dalal Street, where the BSE Sensex surged over 900 points and the NSE Nifty jumped more than 260 points in early trade, reflecting robust domestic investor confidence alongside the rallying rupee
