Rupee Opens On Strong Note By 28 Paise As Crude Oil Prices Tumble 4%

The Indian Rupee on Monday started the week on a strong note against the US Dollar supported by a sharp decline in crude oil prices. The currency appreciated 28 paise to trade at 96.25 against the greenback.
At the interbank foreign exchange market, the rupee opened at 96.18 against the US dollar before giving up some gains to trade at 96.28. It had settled at 96.53 on Friday, recovering 20 paise from an intra-day low.
Crude oil prices tumbled 4 per cent after the US and Iran paused strikes over the weekend after two weeks of attacks.
Brent crude futures fell $3.96, or 4.1 per cent, to $92.82 ‌by 0329 GMT after briefly slipping under the key support level of $90 earlier in the session.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “The sharp dip in Brent crude price from $102 four days ago to around $93 this morning is a sentiment positive for the market. If the deescalation of the West Asia conflict holds and crude price drifts lower, that can sustain a mild rally in the market. FII flows have been very inconsistent this month, alternating between buying and selling.”
“The correction in chip stocks and concerns surrounding the AI trade have the potential to revive enthusiasm of FPIs in Indian stocks. The diversity of stocks available in the Indian market is rare among emerging markets. At some point the FPIs will be forced to recognise this and move away from markets dominated by a single stock or two stocks as in Taiwan and South Korea.”
Stock Markets also also traded higher as the Sensex climbed 613.80 points, or 0.81%, to 76,673.57, while NSE Nifty gained 165.40 points, or 0.70%, to 23,931.55. Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 3,892.77 crore on Friday, according to exchange data.