Tuesday’s session started on a strong note as the rupee appreciated by 15 paise against the US dollar as market sentiments improved on expectations of lower crude oil prices and easing of tensions in the Middle East. Saudi Arabia’s decision to drastically cut oil prices created a positive atmosphere for Asian buyers. The currency opened at 95.33 and strengthened to 95.28 against the US dollar in the interbank foreign exchange market. Meanwhile, the previous session ended at 95.43.Forex traders attributed the currency’s gains to a decline in Middle East risk premiums and the smooth movement of ships through the Strait of Hormuz, factors that helped keep oil prices low.“A positive factor for the Indian rupee was Saudi Arabia cutting oil prices in Asia by US$11 a barrel, the lowest in the last 26 years, amid improving supply conditions,” said Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP.He said that the demand for dollars from Indian refiners remains clear. According to Bhansali, Indian Oil and HPCL had issued tenders to buy 7 million barrels of crude, which led to good bids in US dollars in the last few days.Despite the rupee’s gains, the dollar index, which tracks the greenback against a basket of six currencies, was up marginally 0.01% at 100.86.Brent crude futures also rose 0.64 percent to US $ 72.45 per barrel. The rise came as fresh security concerns around the Strait of Hormuz overshadowed expectations of abundant global crude supplies after Saudi Arabia sharply cut prices for Asian customers.It is being reported that a tanker sailing near the Strait of Hormuz was hit by a projectile off the coast of Oman, causing a fire. There were no casualties in the incident.Indian stock markets also opened with a positive trend. In early trade, BSE Sensex rose 176 points to 78,461.16, while NSE Nifty rose 34.1 points to 24,464.45.Meanwhile, exchange data showed that foreign institutional investors (FIIs) remained net buyers on Monday, buying domestic equities worth Rs 243.03 crore.