USD/INR: Rupee Gains 13 Paise to 86.47 Amid Foreign Fund Outflows and Weak Equity Markets

The Indian rupee opened 15 paise stronger on Monday, buoyed by a weakening dollar index and gains in Asian currencies. The local currency began trading at 86.4613 against the U.S. dollar, compared to its previous close of 86.6125.

Rupee Strengthens Amid Dollar Index Decline

The dollar index, which measures the U.S. dollar’s performance against six major global currencies, declined to 109.143 from 109.347. The easing of the dollar index supported the recovery in the rupee, as well as other Asian currencies, which also posted gains during the session.

Trump’s Swearing-In Ceremony Impacts Markets

The dip in the dollar index coincided with the lead-up to Donald Trump’s swearing-in as the 47th president of the United States. The 78-year-old participated in a series of events and celebrations before returning to Washington, D.C., for the inauguration ceremony. Market sentiment appeared cautious amid the political transition in the U.S.

Crude Oil Remains Steady 

Oil prices remained steady on Monday as speculation over U.S. President-elect Donald Trump easing restrictions on Russia’s energy sector in exchange for a Ukraine peace deal balanced concerns over potential supply disruptions from stricter sanctions.

Brent crude futures slipped by 6 cents, or 0.07%, to $80.73 a barrel by 0229 GMT after a 0.62% decline in the previous session. U.S. West Texas Intermediate (WTI) crude, with its February contract expiring on Tuesday, rose by 10 cents, or 0.13%, to $77.98 a barrel, while the more active April contract edged down 1 cent to $77.38.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.