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.
