Mumbai: The Indian rupee closed marginally stronger on Thursday, gaining 3 paise to settle at 92.51 against the US dollar, supported by weakness in the American currency even as geopolitical tensions kept market sentiment cautious.
At the interbank foreign exchange market, the rupee opened at 92.63 and later touched an intraday low of 92.92 against the dollar before recovering to end on a slightly positive note.
Forex traders said that despite the modest gain, overall sentiment in the market remained cautious due to ongoing uncertainties in West Asia. Concerns over potential disruptions in the Strait of Hormuz have kept investors on edge, given its importance for global oil supply.
Market participants are also closely monitoring developments involving Iran, which has warned of stepping away from diplomatic talks if Israel continues its military actions in Lebanon. These tensions have contributed to a “wait-and-watch” approach among investors, limiting strong movements in the currency market.
Analysts noted that while a weaker US dollar provided some support to the rupee, persistent geopolitical risks and volatility in global markets continue to influence trading patterns.
Further movement in the rupee is expected to depend on global cues, including developments in West Asia and trends in the US currency.
