Rupee Extends Gains For 5th Day, Crude Oil Prices Fall As US Midterms Raise Iran War Hopes

The Indian rupee extended its winning streak for the fifth consecutive session on Thursday, while crude oil prices tumbled as investors bet that the Democrats' sweeping gains in the US midterm elections could push President Donald Trump towards an exit from the Iran war.

The rupee opened higher by 29 paise at 94.35 per dollar against Wednesday's close of 94.64.

Meanwhile, Brent crude futures fell $1.16 or per cent to $93.46 a barrel extending the decline for a fourth consecutive session.

Similarly, US West Texas Intermediate (WTI) crude futures declined $1.47 or 1.66 per cent to $86.65.

Both benchmarks had tumbled about 10 per cent and settled below $100 per barrel mark in the previous session.

Moreover, crude prices have now fallen nearly 16 per cent so far this week.

The selloff follows the Democrats' victory in both chambers of Congress, dealing a major setback to Trump and his Republican Party.

A Democratic-controlled Congress could constrain the US president's military options and tighten spending on the conflict, giving him a greater incentive to pursue a negotiated exit rather than risk further escalation.

Reports claim that a full-scale assault on Iran now appeared less likely.

US President Donald Trump also said that Washington had no immediate plans to strike Iran, as per reports.

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Apart from that, crude shipments through the Strait of Hormuz -- the key waterway for most Gulf oil supplies -- have recovered to close to pre-war levels, albeit at a higher cost.

The dollar index -- which measures the greenback against a basket of currencies -- fell 0.06 per cent to 101.41 after a 0.36 per cent decline in the prior session.

Domestic equity benchmarks also traded higher, jumping nearly 2 per cent each on strong global cues.

BSE Sensex opened at 78,910.94, an increase of over 1,600 points or 2 per cent, while the NSE Nifty 50 began trade at 24,378.05, up 417.45 points or 1.74 per cent.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)