Indian rupee gains strength on back of lowering oil prices

This is on the back of falling crude oil prices, sources said

The Indian rupee rose for the seventh straight day as it strengthened by 35 paise to 71.11 against the dollar.

This is on the back of falling crude oil prices, sources said.

It need be mentioned that weakness in the dollar against some currencies overseas and increased selling of the greenback by exporters and banks also supported the rupee.

Fresh foreign fund inflows and a steep fall of nearly 7 per cent in global crude prices to one-year low on Tuesday buoyed rupee sentiments, as per the trading community.

In the last six trading sessions, the domestic unit has gained by 143 paise against the US currency.

India imports more than 80 per cent of its crude requirements, which is why a fall in oil prices is significant for the rupee.

The rupee rose by 21 paise to end at 71.46 against the dollar on Tuesday, on increased selling of the greenback by exporters amid softening crude oil prices, and persistent foreign fund inflows.

The foreign exchange and debt markets were closed for ‘Eid-e-Milad’.

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