India, May 14 -- The rupee strengthened by 31 paise to 85.05 against the US dollar in early Wednesday trade, driven by gains in domestic stock markets and encouraging macroeconomic indicators.
However, forex traders noted that a sharp rise in global crude oil prices could put pressure on the rupee. Brent crude has recently surged to nearly USD 66 per barrel, raising concerns over a potential widening of India's trade deficit.
Additionally, foreign fund outflows have somewhat limited the domestic currency's appreciation.
Published by HT Digital Content Services with permission from Dion Global Solutions Limited....