Dollar Near Three‑Week Low as Oil Volatility Fuels Rupee Rally

The U.S. dollar slipped toward a three‑week low on Tuesday, as market participants weighed the impact of fluctuating oil prices. The dollar index closed at 94.12, down 0.13 %, its lowest level since early October.

Crude oil remained the main driver of market volatility. WTI crude rose to $98.75 per barrel, a gain of $0.93 (+0.95 %) on the day, while Brent crude climbed to $109.89, up $1.10 (+1.01 %). The uptick in oil prices helped offset the dollar’s weakness.

In contrast, precious metals slipped. Gold fell to $4,120.99 per ounce, down $4.37 (‑0.11 %), and silver dropped to $57.458, a decline of $0.542 (‑0.94 %).

Other commodities saw mixed moves. Copper eased to $6.5935 per pound, down $0.0100 (‑0.15 %), whereas aluminum rose to $3,027.65, up $8.15 (+0.27 %). Natural gas slipped to $2.943 per MMBtu, down $0.020 (‑0.67 %).

Against this backdrop, the Indian rupee continued its rally, trading at 82.85 per U.S. dollar, a 0.5 % gain from the previous close. Analysts suggest that the rupee’s strength is supported by robust domestic demand and a relatively stable inflation outlook.

Overall, the day’s trading reflected a cautious stance on the dollar, buoyed by oil’s resilience and the rupee’s momentum, while precious metals and some base metals faced modest declines.