The Indian rupee opened higher against the US dollar on Thursday, appreciating 41 paise to trade at 96.15.
The move marks a reversal of the recent depreciation trend, driven by a pullback in global crude oil prices that has alleviated pressure on India’s current account.
The currency’s gain reflects the direct transmission of lower energy import costs to the foreign exchange market.
As crude prices ease, the immediate burden on India’s trade deficit softens, allowing the rupee to recover ground lost in previous sessions when rising oil benchmarks weighed heavily on sentiment.
This development follows a volatile period for the Indian currency.
The rupee had slipped 20 paise to 95.17 on Wednesday amid rising crude prices, only to see a modest recovery of 26 paise to 94.90 in the prior session.