The Indian rupee strengthened by around 33 paise to close at Rs. 95.41 against the US dollar on Tuesday, recovering from its previous close of Rs. 95.74. The gain came as crude oil prices declined sharply and the Reserve Bank of India stepped in through dollar sales to support the domestic currency.
Brent crude fell by more than 3% to around $89.20 a barrel, helped by easing concerns over the impact of fresh US sanctions on Iran and hopes of progress on the West Asia front. The rupee also benefited from a softer dollar and improved sentiment in domestic equities.
Going ahead, traders are expected to closely watch crude prices, RBI intervention, foreign fund flows and developments around the US-Iran conflict. The rupee could remain in a relatively narrow range in the near term, with lower oil prices providing some support.
Leave A Comment