Rupee appreciates 10 paise to 84.31 amid upbeat equity markets and geopolitical optimism

The Indian rupee gained 10 paise to adjacent astatine 84.31 against the US dollar connected Monday, buoyed by beardown home equities and improved planetary hazard sentiment.

Key drivers

• Equity marketplace surge: A crisp rally successful the Sensex and Nifty bolstered capitalist confidence, supporting the rupee.

• Geopolitical stability: Reports of a imaginable ceasefire woody betwixt Israel and Hezbollah eased geopolitical tensions, further aiding sentiment.

• US enslaved yields: The assignment of Scott Bessent arsenic US Treasury Secretary led to optimism astir fiscal prudence, weighing connected dollar yields and benefiting emerging marketplace currencies similar the rupee.

Trading highlights

At the interbank forex market, the rupee traded successful a constrictive range, hitting an intraday precocious of 84.25 earlier closing astatine 84.31. On Friday, it had closed astatine 84.41, recovering from grounds lows.

Analyst view

“The USD-INR brace whitethorn stay range-bound successful the adjacent term, with enactment astatine Rs 84.25 and absorption astir Rs 84.52,” noted Praveen Singh of Sharekhan by BNP Paribas.

Global context

• The dollar scale dipped 0.47 per cent to 107.05, reflecting a weaker greenback.

• Brent crude fell 0.69 per cent to $74.65 per barrel, providing further alleviation to the rupee.

Reserve dynamics

India’s forex reserves fell by $17.76 cardinal to $657.89 cardinal for the week ended November 15, continuing a declining trend, arsenic per RBI data.

Market outlook

With geopolitical concerns easing and unchangeable equity markets, the rupee could clasp steady, though broader risks stay from outer factors similar planetary maturation and lipid terms volatility.