Rupee snaps 3-day losses amid lower oil prices; ends stronger at 88.64/$

Indian Rupee today: The domestic currency closed 10 paise higher at 88.64 against the greenback on Monday

The Indian Rupee edged higher on Monday, ending a three-session losing streak as falling crude oil prices provided support.

 

The domestic currency closed 10 paise higher at 88.64 against the greenback on Monday, according to Bloomberg. The Rupee has risen 0.10 per cent this month, while it has fallen 3.53 per cent this year, amongst the worst-performing Asian currencies. 

 

The advance in the currency comes when India finalised its first structured contract to source liquefied petroleum gas (LPG) from the United States. The state-run oil marketing companies have concluded a one-year agreement to import about 2.2 million tonnes per annum (MTPA) of LPG for the contract year 2026. 

 

Meanwhile, the US-India trade deal saw a minor development as US President Donald Trump relaxed duties on tea, spices and nearly 200 food and agricultural items to curb domestic inflation, which had risen to 15 per cent. This move is expected to offer a modest boost to Indian agricultural exports, with an estimated $2-3 billion in benefits, analysts said. 

 

India's exports contracted 11.8 per cent to $34.38 billion in October, according to government data released on Monday. Imports jumped 16.63 per cent to $76.06 billion. The country's trade deficit stood at $41.68 billion during the reporting month. Imports surged due to increased shipments of gold and silver.

 

The dollar index was trading stronger as traders await a backlog of key US economic data, which was delayed due to the recent government shutdown. The measure of the greenback against a basket of six major currencies was up 0.10 per cent at 99.39.

 

In commodities, crude oil prices traded lower amid supply concerns, with US crude inventories rising for two consecutive weeks. Brent crude price was down 0.57 per cent at 64.02 per barrel, while WTI crude prices were lower by 0.63 per cent at 59.70 per barrel, as of 3:38 PM IST.