Rupee Closes Flat Against Dollar Amid Climbing Oil Prices

The Indian rupee closed flat against the US dollar on Tuesday after opening stronger amid a steady dollar and easing crude oil prices.

The rupee closed flat after appreciating two paise to Rs 83.95 in the morning against the US dollar, according to Bloomberg. It had closed at Rs 83.97 on Monday.

The US Dollar Index surged by 0.09% to reach 103.23 at 3:38 p.m. IST. Brent Crude was trading at $82.08, having a downturn of 0.27% at 3:40 p.m. IST.

Brent oil prices further moved up to $82.04 per barrel and beyond as Middle East tensions escalated, as any strike could further pinch access to global oil supplies and the US could put an embargo on Iranian crude exports.

"However, any reflection of higher economic risks could weigh on oil prices at a time when OPEC has cut their 2024 demand forecast and is set to roll back on their production cuts from October, which could point to a less tight oil market," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

Investors in the market may await Tuesday's producer price index data from the US and Wednesday's consumer price index from India, which will be closely watched by market participants to give an indication of their hopes for rate cuts. Indian trade dates will also be in their focus.

"There was no opportunity for importers or exporters to be able to take a call on buying or selling dollars. The range for tomorrow is also expected between 83.85/84.05," Bhansali said.