Rupee recovers 75 paise to 86/dollar mark, biggest jump in month

MUMBAI: Price of benchmark Brent crude declined by nearly $4 to $67.7 a barrel while US West Texas Intermediate crude turned cheaper by $3.8 at $64.7 per barrel as concerns abated over disruption in oil supplies due to the tensions in West Asia.

Meanwhile, the local currency recorded its biggest daily gain in a month, recouping 85 levels a day after dealers feared that it may test 87 levels. The rupee recovered from record low level and closed with a steep gain of 75 paise at 86.03 (provisional) against the dollar.

A weak greenback and positive sentiments in the domestic equity markets further boosted the local unit, according to forex traders.

Brent crude, the global oil benchmark, plummeted 3.2% to $69.2 per barrel in futures trade as Trump announced that Iran and Israel agreed to a ceasefire. At the interbank foreign exchange, the local unit opened at 86.07 against the US dollar and traded in the range of 85.91-86.27 before closing at 86.03 (provisional). The rupee had plunged 23 paise to close at a five-month low of 86.78 against the dollar on Monday. Going forward, the dollar movement is expected to be determined by US data releases including consumer confidence and Fed chief's testimony.