Indian Rupee Strengthens To 95.57 Against Dollar On Softer Oil Prices

The Indian rupee strengthened to 95.57 against the US dollar in early Wednesday trade, gaining 5 paise from Tuesday's closing level of 95.62. The appreciation was driven by softer crude oil prices and broad-based recovery across Asian currencies. Brent crude futures declined 0.99 per cent to $98.27 per barrel, easing pressure on India's import bill.

Forex traders cautioned that the rupee's direction would depend on geopolitical developments, global risk sentiment and energy price movements. While lower oil prices supported the currency, gains were capped by a firm US dollar following Federal Reserve rate increases and foreign portfolio investor selling. The dollar index rose 0.10 per cent to 100.70.

Domestic equity markets offered additional support, with the Sensex climbing 283.66 points to 74,812.74 and Nifty advancing 85.55 points to 23,414.55 in early trade. Analysts identified 96.30 as an upper resistance level for the dollar-rupee pair, with immediate support at 95.50.