Rupee Closes Stronger As Crude Drops On Weak China Outlook
With the RBI firmly in control, the rupee is likely to remain within a narrow range, says Amit Pabari of CR Forex Advisors.
The Indian rupee closed stronger on Tuesday as the US dollar index and crude oil prices fell.
The currency appreciated 8 paise to close at Rs 83.79 after opening flat at 83.87 against the US dollar, according to Bloomberg data. It closed at 83.87 on Monday.
With the RBI firmly in control, the rupee is likely to remain within a narrow range, according to Amit Pabari, managing director of CR Forex Advisors. "However, if the RBI eases its grip on the rupee, a swift move towards the Rs 83.60 level could be on the horizon."
The rupee will currently fluctuate between Rs 83.80 and Rs 84.05, with a wider range of Rs 83.60–84.05 in the medium term, according to Pabari.
Brent crude was 0.04% lower at $77.63 at 3:42 p.m. The DXY was 0.05% down at 101.84 at 3:44 p.m. Crude prices fell the most in more than two weeks, as China's tepid demand outlook outweighed geopolitical tensions in the Middle East.
