The rupee depreciated 10 paise to 94.66 against the US dollar in early trade on Tuesday, as surging Brent crude prices near USD 97/bbl and Middle Eastern geopolitical friction dampened investor confidence.
Forex traders noted that ongoing RBI dollar sales and strong foreign-currency inflows under special schemes helped keep the rupee range-bound despite heavy external pressures.
At the interbank foreign exchange market, the rupee opened at 94.49 against the US dollar, then touched 94.66, registering a fall of 10 paise from its previous close.
On Monday, the rupee fell 13 paise to close at 94.56 against the American currency.
“The RBI’s intervention has been particularly important in preventing higher oil prices from translating into a weaker rupee,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
According to Bhansali, the rupee is expected to stay in a range of 94.00 to 94.75 as crude oil is near to USD 97 level while dollar index
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