- The RBI's payout comes at a time the government strives to tackle a nearly five-year low economic growth with lakhs of estimated job cuts across sectors, and defend its ambitious target of containing fiscal deficit at 3.3 per cent of the GDP.
- Easing of concerns about the US-China trade conflict along with weakness in the dollar overseas supported the rupee, according to analysts.
- US President Donald Trump said on Monday that his negotiators had received two "very good calls" from China and it was a sign that China is serious about reaching a deal and that talks would begin soon. "I think we're going to have a deal, because now we're dealing on proper terms. They understand and we understand," he said.
- The dollar index - which gauges the greenback's strength against six peers, was last seen 0.08 per cent lower on Tuesday.
- Rising crude oil prices and foreign fund outflows however limited the gains in the rupee. Brent crude futures - the global benchmark for crude oil - were last seen trading 1.2 per cent higher at $59.39 a barrel, after falling 1 per cent in the previous session dropping for a third day in a row.
- Analysts expect some pressure to continue in the rupee over the near term.
- "72.20 is an important resistance and till the time it is trading below 72.30 the trend is bearish for the rupee-dollar pair," Rahul Gupta, currency research head, Emkay Global Financial Services, told NDTV in an email response.
- Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out a net Rs 923.94 crore on Tuesday, provisional data from the NSE showed.
- "However, the development on US-China trade war and performance of emerging market currencies will track the movement in rupee," Mr Gupta added.
- On Monday, the rupee had ended below the 72 mark against the US currency for the first time since November 14, amid weakness in Asian peers.
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