Rupee hits 94.35 as crude falls, foreign investors return

The Indian rupee strengthened for a fifth straight session to 94.35 against the US dollar on Thursday, driven by falling crude oil prices, a weaker dollar, and renewed foreign investor buying in Indian equities. Brent crude plunged 8.7% to below $100 a barrel following US midterm election results, which raised hopes of a negotiated exit from the US-Iran conflict. Foreign portfolio investors bought shares worth Rs 7,284 crore on Wednesday, marking their fourth consecutive session of buying. India imports nearly 90% of its crude oil requirements, so cheaper energy reduces dollar demand and inflation pressures. However, analysts caution the recovery may be unsustainable if oil prices rise again due to potential escalation in the Strait of Hormuz.