The Indian rupee recovered from record low level and closed with a steep gain of 75 paise at 86.03 (provisional) against the US dollar as global crude oil prices went down following hopes of deescalation in Middle East tensions. Brent crude, the global oil benchmark, plummeted 3.6 per cent under USD 69 per barrel in futures trade as US President Donald Trump announced that Iran and Israel agreed to a ceasefire. A weak greenback and positive sentiments in the domestic equity markets further boosted the local unit.
The dollar index fell to a one-week low as risk sentiment improved after President Trumps announced that a ceasefire has been agreed upon between Iran and Israel, reducing appeal for the safe haven currency. Moreover, Fed Governor Bowman and Chicago Fed President Goolsbee said they favored a Fed rate cut at next months FOMC meeting weighing on the greenback. Meanwhile, Indian shares ended off their day's highs on Tuesday as Israel accused Iran of breaching the ceasefire, just hours after it was announced by U.S. President Donald Trump earlier. The benchmark 30-share BSE Sensex hit a high of 83,018 earlier before giving up much gains to end the session up 158.32 points, or 0.19 percent, at 82,055.11. The broader NSE Nifty index closed up 72.45 points, or 0.29 percent, at 25,044.35 after having surged to 25,317 earlier in the session. On the NSE, USDINR futures ended lower by 0.85% at 86.05.
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