Rupee Edges Higher as Oil Surge, Geopolitical Tensions Drive Market Moves
MUMBAI — The Indian rupee strengthened by 10 paise on Monday, opening at 92.83 against the U.S. dollar, supported by easing geopolitical concerns and measures from the Reserve Bank of India, even as global oil prices surged sharply.
The dollar index, which tracks the greenback against a basket of six major currencies, rose 0.37 percent to 98.27.
Currency analysts said the rupee’s near-term outlook remains tilted toward appreciation, though geopolitical developments continue to add uncertainty. A sustained move beyond the 93 level could push the currency toward the 93.5–93.7 range, while 92.3 is seen as immediate support and 92 as a stronger base.
Global oil markets rallied significantly, with Brent crude climbing as much as 7.18 percent during intraday trading to $96.87 per barrel, approaching the $100 mark. U.S. West Texas Intermediate crude rose 8.76 percent to $91.20 per barrel.
On the domestic front, crude oil futures on the Multi Commodity Exchange advanced 6.72 percent to Rs 8,289 per barrel, tracking the global trend.
The sharp rise in oil prices followed renewed tensions in West Asia after Iran signaled tighter control over the Strait of Hormuz, a key global energy corridor, and warned that the strategic route could be closed to maritime traffic.
In contrast, precious metals came under pressure, with gold and silver falling nearly 2 percent in early trade.
On the Multi Commodity Exchange, gold futures for June were trading at Rs 1,52,968 per 10 grams, down 1.06 percent, after touching a low of Rs 1,52,829 and a high of Rs 1,53,251. Analysts said the metal held above the Rs 1,52,000 level due to buying interest at lower levels, with a move above Rs 1,55,000 potentially driving prices toward Rs 1,57,000–1,58,000.
Silver futures for May declined about 2 percent to Rs 2,52,100 per kilogram, after hitting a low of Rs 2,52,016 and a high of Rs 2,54,089. Resistance is seen in the Rs 2,55,000–2,60,000 range, with a breakout potentially lifting prices to Rs 2,68,000–2,70,000. On the downside, a drop below Rs 2,48,000 could pull prices toward Rs 2,44,000–2,40,000.
In international markets, gold fell 1.34 percent to $4,814 per ounce, while silver dropped 2.25 percent to $80 per ounce, reflecting broader pressure on precious metals. (Source: IANS)
