Indian rupee rises on Saudi oil price cuts and improved Middle East sentiment

Mumbai: The Indian rupee logged its best day in nearly a month, climbing nearly 50 paise against the dollar Tuesday, amid reports that Saudi Arabia would reduce crude oil prices for Asian buyers as shipments fully resume through the Hormuz Strait, traders said."The rupee traded stronger after reports said that Saudi Arabia cut its August crude oil prices for Asian buyers amid easing geopolitical tensions in West Asia," said Jateen Trivedi, VP currency research analyst, LKP Securities. "This improved sentiments and pushed short covering in rupee."The rupee ended at 94.96 against the dollar Tuesday, compared with 95.40 Monday. Brent crude oil futures were trading around $72.88 a barrel.Oil prices have fallen nearly $50 a barrel from their recent peak, when the rupee itself was tantalizingly close to breaching the 97 mark to the dollar.Resumption of foreign portfolio investor (FPI) flows into Indian equities also helped stabilise the rupee."The rupee was trading with a positive sentiment and FPI outflow in equity too has eased. The currency has reversed all losses from the past three days," said Dilip Parmar, currency research analyst at HDFC Securities.The rupee traded in the range of 95.48 and 95.95 Tuesday, and the central bank likely sold dollars around 95.45 levels.The dollar index eased modestly to 100.9, from 101.2 a day ago. A reading above 100 indicates a relatively stronger dollar.The rupee is expected to trade in the range of 94.75 to 95.50 on Wednesday. The rupee has depreciated 0.4% in the fiscal year so far.

Forex traders said market sentiment was also buoyed after Saudi Arabia slashed August crude oil prices for Asia by $11 per barrel

Forex traders said market sentiment was also buoyed after Saudi Arabia slashed August crude oil prices for Asia by USD 11 per barrel.

Saudi Arabia's sharp cut in August crude prices for Asia and easing Middle East tensions lift market sentiment.

The positive factor for the Indian rupee was Saudi Arabia slashing Asia oil prices by $11 per barrel, said an expert

The rupee appreciated 15 paise to 95.28 against the US dollar in early trade on Tuesday on improved market sentiment after reports that Saudi Arabia has slashed August crude oil prices for Asia amid easing of geopolitical tensions in the Middle East. Forex traders said lower Middle East risk premium and higher traffic from the Strait of Hormuz kept the oil prices lower. At the interbank foreign exchange market the rupee opened at 95.33 and later touched 95.28 against the American currency, registering a gain of 15 paise from its previous close. On Monday, the rupee had settled at 95.43 against the US dollar. The positive factor for the Indian rupee was Saudi Arabia slashing Asia oil prices by USD 11 per barrel in a record cut in the last 26 years amid improving supply conditions, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP. Bhansali further noted that the buying by Indian oil companies also was indicated by the fact that Indian Oi