The rupee was up nearly 0.1% on Tuesday at 83.7925 per US dollar, versus its previous close of 83.87/$1, according to LSEG data.
The currency strengthened to 83.765/$1 during the day, the strongest since 5th August, LSEG data showed, but the central bank likely brought dollars worth $1 billion, capping the appreciation of the rupee, dealers said.
“The expectations for tomorrow are a range of 83.70 to 83.85 in the rupee and traders will be watching how the Reserve Bank is intervening at different levels”, said a foreign exchange trader at a public sector bank.
The dollar index weakened to its lowest in seven months at 101.82 on Tuesday, according to Reuters.Investors will pay attention to the minutes of the Fed’s meeting due on 21st August, and remarks from Fed policymakers, including Chair Jerome Powell who is slated to speak on 23rd August, will be in focus this week for guidance on rate cuts in the world’s largest economy. Brent crude oil prices softened by 0.2% at $77.48 per barrel, according to Reuters as supply chain disruptions eased in the middle east.A decline in crude oil prices has a softening effect on domestic inflation while helping contain the trade deficit, as India is a major importer of the commodity.
