Indian rupee strengthened 15 paise to 94.70 against the US dollar in early Wednesday trade, supported by positive domestic equity momentum and a weaker American currency globally. The Sensex surged 2.39 percent while Nifty climbed 2.42 percent, driven by de-escalation hopes in the West Asia conflict following US President Trump's statements on Iran. However, the rupee faces persistent headwinds from elevated crude oil prices and continued foreign fund outflows. The Reserve Bank's recent mandate capping banks' Net Open Position at $100 million is influencing currency trading dynamics as institutions adjust positions ahead of the April 10 compliance deadline. Brent crude climbed 1.50 percent to $105.53 per barrel, adding pressure on the currency. Despite the intraday gains, the rupee remains vulnerable given macroeconomic challenges and geopolitical tensions affecting capital flows.
