The Indian rupee appreciated sharply to close 15 paisa stronger against the dollar on Tuesday on likely bunched up dollar flows after an extended weekend. The local currency was also supported by inflows into local stocks and the easing in oil prices.
The local currency after opening four paise stronger at Rs 83.51 against the greenback on Tuesday, strengthened to hit intraday high of Rs 83.39, the highest since June 7, before closing at Rs 83.56 on Tuesday, according to Bloomberg dat.
The rupee had closed at Rs 83.56 on Friday.
Brent crude was trading at $84.06 per barrel on solid demand outlook. The US dollar index was at 105.48.
"The RBI is expected to play a crucial role with substantial reserves of $655 billion and is poised to intervene to prevent significant rupee depreciation," Amit Pabari, managing director of CR Forex Advisors, said. "Expected inflows, such as Oyo raising Rs 1,000 crore and Inox Green Energy also raising up to Rs 1,000 crore, are likely to bolster the rupee."
"For USDINR, Rs 83.45 will act as a support, while Rs 83.60 is an immediate resistance," Kunal Sodhani, vice president of Shinhan Bank, said.
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