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Market Snapshot
Forex traders said the domestic unit found support at lower levels as local equity markets showed a positive trend and Brent crude oil hovered near USD 59 per barrel. These factors helped steady the currency after recent volatility.
What helped the currency
- Positive domestic equities: Strength in local stocks improved investor sentiment, reducing immediate pressure on the currency.
- Stable oil prices: Brent around USD 59 a barrel eased concerns about a sudden rise in import costs, which can weigh on the trade balance and the currency.
- Forex flows: Continued inflows and demand-supply balance in the foreign exchange market supported the unit at lower levels.
Traders’ outlook
Market participants said short-term movements will likely remain sensitive to global oil trends and domestic equity performance. Any sharp shift in Brent prices or a reversal in stock markets could quickly influence currency direction.
Key takeaways
- Domestic equities and stable oil prices were the main supports for the currency.
- Traders remain watchful for changes in commodity markets and local market sentiment.
- Near-term currency movements are expected to follow broader risk appetite and external oil dynamics.