The Indian rupee is poised to extend its recent gains at the open on Thursday, supported by a significant decline in global oil prices that have slipped below levels seen prior to the escalation of tensions with Iran.
Traders expect the currency to strengthen into the 94.25-94.30 range against the US dollar, a notable improvement from Wednesday’s close of 94.6650.
The move reflects a broader shift in market sentiment as energy costs ease, reducing the import bill pressure on India, the world’s largest crude importer.
The rupee’s strength is further bolstered by a softening US dollar across Asian trading sessions, which has provided additional support for emerging market currencies.
This combination of lower input costs and favorable FX dynamics offers a reprieve for the Indian central bank, which has been managing currency volatility amid geopolitical uncertainty.
The decline in oil prices comes as positive signals from US-Iran peace negotiations continue to ease fears of a prolonged supply disruption in the Gulf region.