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.