Rupee gains as crude oil prices ease

Mumbai: The rupee appreciated 6paise to close at 83.31 against the US dollar on Tuesday following a weak greenback against major currencies overseas and softening crude oil prices in international markets. However, a sluggish trend in the domestic equity markets restricted the sharp upside in the local currency, forex traders said. At the interbank foreign exchange market, the local unit opened strong at 83.32 and touched an intraday high of 83.26 and a low of 83.36. The domestic unit finally settled at 83.31, a gain of 6paise from its previous close.

On Friday, the rupee had settled at 83.37 against the US dollar. The forex market was closed on Monday on account of general elections. “A decline in crude oil prices and fresh foreign inflows also supported the rupee. US Dollar softened on rate cut expectations by Fed but hawkish comments by Fed officials supported the US dollar at lower levels,” Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said. Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said: “The rupee traded positively.

This strength is attributed to predictions of the current government winning the general election, leading to increased stability. “Additionally, Domestic Institutional Investors (DIIs) have been actively buying into capital markets. Soft crude prices and a stable dollar index also supported the rupee. The expected range for the rupee in the upcoming sessions is between 83.00 and 83.50.”