Rupee rebounds 20 paise to 95.41 against US dollar

Rupee began Tuesday on a stronger note, rising 20 paise against the US dollar in early trade, supported by a easing oil prices and the US dollar index, after the pause in hostilities between the United States and Iran. According to forex traders, the domestic currency opened on a stronger footing after Israel and Iran agreed to de-escalate tensions and ease strikes.At the interbank foreign exchange market, the rupee opened at 95.47 against the US dollar and later touched 95.41, marking a gain of 20 paise from its previous close.The currency had settled 43 paise lower at 95.61 against the American currency on Monday.In a research note, IFA Global said the rupee is likely to trade in the 95.40-95.80 range with a weakening bias.Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, slipped 0.06% to 99.98.Brent crude, the global oil benchmark, declined 0.99% to $93.32 per barrel in futures trade.Domestic equity markets also traded higher, with the Sensex rising 350.57 points to 73,874.83 and the Nifty advancing 114.50 points to 23,237.50.Also read | RBI to fully absorb forex risks, inflows may see $50bn boostOn the global front, Israel and Iran agreed to de-escalate and ease strikes. US President Donald Trump held talks with Israeli Prime Minister Benjamin Netanyahu. However, Iran warned that it would retaliate if Israeli bombing continued.Exchange data showed that foreign institutional investors sold equities worth Rs 5,555.67 crore on a net basis on Monday.The current account surplus had stood at $13.7 billion, or 1.4% of GDP, in the fourth quarter of 2024-25.For the full fiscal year 2025-26, however, India's current account deficit came in at $25.2 billion, or 0.6% of GDP, compared with $22.9 billion, or 0.6% of GDP, in 2024-25.Meanwhile, the positive sentiment was also reflected in Dalal Street, which traded in green. BSE Sensex was trading at 73,583.59, up 59.33 or 0.08% while NSE Nifty50 jumped to 23,215.85, adding 92.85 or 0.40%, around 11 am.