Rupee Opens 29 Paise Higher, Brent Crude Falls 1% On Iran War Exit Hopes

The Indian rupee extended its winning streak for a fifth consecutive session on Thursday, while crude oil prices continued to decline amid hopes of a possible resolution to the Iran war.

The rupee opened 29 paise higher at 94.35 against the US dollar, compared with Wednesday’s closing level of 94.64.

Brent crude futures fell $1.16 to $93.46 per barrel, extending their decline for a fourth consecutive session. US West Texas Intermediate (WTI) crude futures dropped $1.47, or 1.66 per cent, to $86.65.

Both benchmarks plunged around 10 per cent in the previous session and settled below $100 per barrel. Crude prices have declined nearly 16 per cent this week.

The sell-off followed sweeping Democratic victories in both chambers of Congress, delivering a significant setback to US President Donald Trump and the Republican Party.

A Democratic-controlled Congress could restrict Trump’s military options and tighten spending on the conflict. This could encourage Washington to pursue negotiations rather than escalate hostilities.

Reports suggested that a full-scale US assault on Iran had become less likely. Trump also reportedly stated that Washington had no immediate plans to strike Iran.

Meanwhile, oil shipments through the Strait of Hormuz, a crucial route for Gulf oil supplies, recovered close to pre-war levels, although transportation costs remained elevated.

The dollar index, which measures the US currency against a basket of currencies, declined 0.06 per cent to 101.41 after falling 0.36 per cent in the previous session.

Indian equity benchmarks also rallied nearly 2 per cent each amid strong global cues.

The BSE Sensex opened at 78,910.94, gaining over 1,600 points or 2 per cent. The NSE Nifty 50 began trading at 24,378.05, rising 417.45 points or 1.74 per cent.

Also Read: Sensex, Nifty Surge Nearly 2% At Opening As US Election Results And Falling Oil Prices Boost Markets