The Indian rupee strengthened on Monday following a fall in Brent oil prices as they wilted under pressure from a stronger dollar.
The local currency strengthened by 7 paise to close at Rs 83.47 against the greenback, according to Bloomberg. It had closed at Rs 83.54 on Friday.
Brent crude was trading at $84.71, while the US dollar index was at 105.60.
The rupee is expected to remain range bound, with the RBI sitting on the fence near to 83.60 to protect it after it hit an all-time low of 83.67 last week, according to Anil Bhansali, executive director at Finrex Treasury Advisors LLP.
Considering good growth rate, stable inflation, reduced fiscal deficit, the all-time-high forex reserves and pipeline of inflows are positive metrics that should ideally bolster the rupee, according to Amit Pabari, managing director at CR Forex Advisors. "Hence, buy on dips around 83.20–83.10 and sell on upticks around 83.50–83.70 remains a viable strategy until the range of rupee is protected."
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