Rupee. (File Photo: IANS)
New Delhi, November 9 (IANS): The Indian rupee appreciated by 25 paise to 93.68 against the US dollar in early trade on Monday, amid a decline in crude oil prices, improving foreign fund inflows, and hopes of de-escalation in West Asia.
Moreover, the currency extended its recent gains after recording its strongest weekly advance of 2026 last week, appreciating about 1 per cent to reach its highest level since April.
On Friday, the rupee surged 43 paise to close at 93.98 against the US dollar.
According to experts, the USD/INR pair opened near 93.90 and was trading around 93.70, extending its recent weakness after breaking below the 94.40-94.50 range.
The 94 level which had previously acted as support has now turned into immediate resistance with the 93.90-94.00 zone emerging as the first hurdle and 94.40-94.50 as the next significant resistance band, they added.
On the downside, immediate support for the currency pair is placed at 93.40-93.50, followed by 92.90-93.00, experts said.
The Relative Strength Index (RSI), near 25, indicates deeply oversold conditions, while the Moving Average Convergence Divergence (MACD) continues to signal strong bearish momentum, although a technical rebound cannot be ruled out.
The near-term bias for the USD/INR pair remained bearish, with a sustained move above 94 needed to signal stabilisation. A decisive break below 93.50 could extend the decline towards 93, according to the experts.
The domestic currency’s recent recovery has been supported by foreign portfolio investment inflows of around $1.5 billion, a softer US dollar, declining crude prices and easing concerns over India's energy import exposure.
Meanwhile, crude oil prices declined on Monday with Brent crude -- the global oil benchmark -- trading 0.15 per cent lower at $98.17 per barrel in futures trade.
The market sentiment improved after US President Donald Trump indicated over the weekend that further military strikes against Iran were unlikely if negotiations over its nuclear programme and the Strait of Hormuz made significant progress.
Trump also noted that the conflict had pushed up oil and gasoline prices, contributing to Republican losses in the midterm elections.
Meanwhile, the US dollar index slipped towards 102 but retained most of its previous gains after stronger-than-expected US employment data reinforced expectations of tighter monetary policy.
Markets are now pricing in an approximately 81 per cent probability of a Federal Reserve rate hike in December, compared with 71 per cent before the employment report.
