Rupee gains 25 paise to 93.68 against dollar on Monday as crude oil prices fall

The rupee was supported by a fall in crude oil prices, higher foreign fund inflows and easing tension in West Asia. In Monday's morning session, it gained about 25 paise against the dollar to reach 93.68.

Last week, the rupee recorded its biggest weekly gain of this year, and its recent rally continues. It is currently at its highest level against the dollar since April. On Friday, it had closed 43 paise stronger at 93.98 against the US dollar.

On Monday, the rupee opened at about 93.90 against the dollar and was trading around 93.70. According to experts, the 94 level used to act as support but has now become resistance. The 93.90-94.00 range is emerging as the first resistance, while 94.40-94.50 is the next key resistance. Experts also said the rupee's support level against the dollar is 93.40-93.50.

Several factors have supported the recent recovery in the country's currency. These include inflows of about $1.5 billion from foreign portfolio investors (FPI), weakness in the US dollar, a fall in crude oil prices and reduced concern over India's dependence on energy imports.

Crude oil prices also came down. Brent crude futures, regarded as the global oil benchmark, fell 0.15 per cent to $98.17 a barrel.

Market sentiment improved after signals given by US President Donald Trump at the end of the week. Trump said that if there is good progress in the ongoing talks on Iran's nuclear programme and the Strait of Hormuz, the likelihood of further military strikes on Iran is lower.