Rupee Extends Winning Streak To Fifth Day, Gains 29 Paise To 94.35 Vs US Dollar As Crude Oil Tumbles

The Indian rupee extended its gains for a fifth consecutive session on Thursday, November 5, opening 29 paise higher against the US dollar as a sharp decline in crude oil prices eased concerns over India’s import bill and currency outlook. Sentiment improved after US President Donald Trump’s Republican Party suffered losses in the midterm elections, raising expectations that the political setback could push the administration towards de-escalation and a negotiated exit from the conflict with Iran.

The domestic currency opened at 94.35 per dollar, compared with Wednesday’s closing level of 94.64, tracking weakness in the US dollar and broad-based gains across most Asian currencies.

Brent crude plunged around 8.5% in the previous session, slipping

below the $100-a-barrel mark. It was trading near $94.20 in Asian hours on Thursday, down nearly 20% so far this week. The sharp correction reflects easing geopolitical risk premiums as investors increasingly price in the possibility of a resolution to the conflict.

The Democratic Party’s decisive victory could embolden lawmakers to push back against Trump’s policies on Iran, support for Israel and further tariff escalation, analysts at ING Bank said in a note.

MUFG Bank said the US midterm election outcome represented a meaningful shift in the political landscape and could trigger an unwinding of part of the political and geopolitical risk premium embedded in financial markets.

Asian currencies broadly higher

The rupee’s gains came amid a largely positive trend across Asian currencies. The Philippine peso and Thai baht were among the strongest performers, appreciating 0.36% and 0.42%, respectively. The Japanese yen and Malaysian ringgit gained 0.29% each, while the South Korean won and Singapore dollar strengthened 0.18% and 0.08%, respectively.

Among the regional currencies, the Taiwan dollar declined 0.21%, while the Chinese renminbi and Indonesian rupiah weakened 0.07% and 0.04%, respectively, against the US dollar.

The dollar also remained under pressure following the Democrats’ sweeping midterm victory, which helped remove a major source of political uncertainty and supported a rally in global equities.

The dollar index, which measures the greenback against a basket of six major currencies, slipped 0.06% to 101.41 on Thursday after falling 0.36% in the previous session. The euro rose 0.12% to $1.1241.