Indian Rupee Strengthens Against U.S. Dollar

The Indian rupee closed stronger against the U.S. dollar on Tuesday after a surge in the dollar index offset the impact of a fall in crude prices.

The local currency strengthened by 3 paise to close at Rs 83.11 against the U.S dollar. It closed at Rs 83.14 on Monday, according to Bloomberg data.

"Cautiousness is expected to kick in ahead of the Fed meeting and NFP data. The ECB’s dovish tone seems to keep weighing on the EUR. While unabated geopolitical concerns bolstered crude oil prices, demand concerns stemming mainly from China," said Kunal Sodhani, vice president of Shinhan Bank.

"For the dollar/rupee, Rs 83.05 will act as a support and Rs 83.25 as a resistance," he said.

"Rupee was in a 2.5 paise range yesterday and is expected to remain in small ranges on Tuesday," Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP said.

"Dollar Index has moved lower to 103.44 while US 10 year has moved further lower to 4.0610%. Asian currencies have also gained slightly including JPY while Crude oil has fallen to $ 82.22 per barrel," he said.