Mumbai: The Indian rupee strengthened at the start of the trading week after global crude oil prices declined following a pause in hostilities between the United States and Iran. Lower oil prices improved investor sentiment and reduced pressure on India’s import bill.
Currency traders said foreign capital inflows and likely intervention by the Reserve Bank of India also supported the rupee. Analysts expect oil prices and upcoming decisions by the US Federal Reserve to remain key factors influencing Indian financial markets.
Economists believe easing crude prices could provide relief to inflation and improve India’s current account outlook if the trend continues over the coming weeks.
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