Rupee Edges Higher on Oil Price Decline and RBI Support
The Indian rupee is poised to edge higher on Tuesday as oil prices decline and long-dated US Treasury yields support risk sentiment. The currency's modest gain is expected to be capped by importer hedging demand.
Data released on Monday showed that India has raised $143.6 billion through measures to strengthen its balance of payments, which has helped the central bank maintain a firm lid on expectations for rupee depreciation.
The rupee's opening range is expected to be around 95.75 to 95.80 per dollar, slightly higher than its close at 95.8150 in the previous session. Brent crude oil prices are hovering around $100 per barrel ahead of potential US-Iran talks at the United Nations General Assembly this week.
Oil prices remain a key monitorable for the rupee as investors assess their impact on India's import bill and the prospect of rate hikes by the central bank. The Reserve Bank of India has been intervening frequently in the FX market to support the rupee, and traders expect this to continue.