Rupee strengthens as investors await US midterm results and oil developments
The Indian rupee closed at 94.74 per dollar on Tuesday as markets monitored US election outcomes and the US-Iran war.
The Indian rupee strengthened modestly on Tuesday, closing at 94.74 per dollar compared to 94.90 in the previous session, according to The Economic Times.
The currency reached 94.62 during early trading but trimmed those gains after oil prices rose by more than $1. This rebound followed a nearly 11 per cent slump in the previous session.
Oil prices increased after an Iranian official stated a deal to end the war was far off. The United States also struck Iran's Qeshm Island, raising concerns regarding energy supplies and the escalation of hostilities.
The US-Iran war, which began in late February, has been a leading cause of high global energy prices. India imports approximately 90 per cent of its oil requirements.
Markets are also focused on the US midterm elections and their influence on President Donald Trump's policies. ING stated in a note that while structural shifts in foreign exchange are not expected, the dollar may face short-term pressure if Democrats secure both the House and the Senate.
On Tuesday, the dollar index remained little changed at 101.7. Meanwhile, dollar-rupee forward premiums dipped slightly as traders awaited fresh cues.
