Rupee extended its rally for the fourth consecutive session on Wednesday, gaining 5 paise to trade at 95.77 against the US dollar, supported by a softer dollar and lower crude oil prices.The currency also drew strength from improved sentiment in domestic equities, with foreign institutional investors turning buyers in Indian stocks, forex traders said.At the interbank foreign exchange market, the rupee started the session at 95.70 against the US dollar and later traded at 95.77, marking a 5 paise rise from its previous closing level.The currency had ended Tuesday’s session at 95.82 per dollar, gaining 17 paise during the day. This followed a 74 paise rise over the previous two trading sessions.Market participants tracked movements in the dollar index, which was down 0.12% at 101.14. The index was under pressure ahead of the Federal Reserve’s monetary policy announcements.Crude oil prices also remained in focus. Brent crude futures, the global oil benchmark, rose 4.27% but continued to trade lower at $87.68 per barrel.According to analysts, crude oil prices moved higher overnight after hopes of a return to negotiations and a ceasefire between the US and Iran were hit following the US military’s statement that Iran had launched multiple ballistic missiles at American forces on Tuesday.US Central Command said all Iranian missiles were successfully intercepted and added that US forces “remain vigilant and at a high state of readiness.”Meanwhile, gains in domestic equities supported the rupee’s movement. The Sensex advanced 682.57 points, or 0.89%, to 77,448.49, while the Nifty rose 186.85 points, or 0.78%, to 24,172.20.Foreign Institutional Investors bought Indian equities worth Rs 755.33 crore on a net basis on Tuesday, according to exchange data.
