The Indian rupee posted its strongest performance in nearly a month on Wednesday, climbing 50 paise against the US dollar. The gain came after Saudi Arabia cut crude oil prices for buyers in Asia, easing pressure on India's import bill. Foreign investor inflows into local equities also supported the currency.
The rupee closed higher after reversing losses recorded over the previous three sessions. Market participants cited reduced geopolitical tensions and the full resumption of shipments through the Hormuz Strait as additional positive factors.
Analysts noted that lower oil costs helped improve sentiment in the forex market. Brent crude prices moved lower following the Saudi price adjustment, directly benefiting India's current account position.
Foreign portfolio investors added to the buying interest in Indian equities, providing further support to the domestic currency. The combined effect lifted the rupee to its best daily showing in almost a month.
