Rupee gains 4 paise to 95.40 as oil prices ease in early trade

The rupee recovered from an initial dip to trade at 95.40 against the American currency, marking a gain of 4 paise during morning trade. The domestic unit had opened weaker at 95.50 and slipped further to 95.52 before reversing course.

The currency's recovery was supported by declining Brent crude oil prices, which fell below the USD 90 per barrel mark for the first time in several trading sessions. Market participants attributed the decline to ongoing negotiations between Iran and Oman regarding a temporary shipping corridor through the Strait, a key global oil transport route.

While negotiations have not yet reached a final agreement, continued discussions have eased concerns about prolonged disruptions to worldwide oil supplies, forex traders noted. The reduced geopolitical risk premium in commodity markets boosted sentiment across emerging market currencies including the rupee.

On the previous trading day, the rupee had closed at 95.44 against the dollar, posting gains of 26 paise. The Indian foreign exchange market was closed on Wednesday for a public holiday.