Indian Rupee Dips at Open Following Recent Gains, Depreciates 3 Paise to ₹84.28

The Indian Rupee saw a depreciation against the US dollar at the open on Tuesday, dipping by 3 paise. This movement comes after a period of strengthening for the local currency. At the start of trade on Tuesday, the Indian Rupee depreciated to ₹84.28 against the dollar. This marks a slight weakening compared to its recent performance.

Recent Performance Context

The depreciation on Tuesday follows a notable gain the previous day. By Monday's close, the local legal tender finished 31 paise stronger at ₹84.25 against the US dollar. This strength on Monday was in contrast to Friday's closing, when the Rupee had settled 7 paise weaker at ₹84.30 to the dollar, despite having touched a seven-month intraday high of ₹83.75 earlier in that session.

Market Outlook 

The Indian Rupee is expected to trade within a narrow range of ₹84.00 to ₹84.75 against the US dollar. Market trends indicate that traders may adopt a buy-on-dips and sell-on-rise strategy, with buying interest near the lower end of the range and selling pressure emerging near the upper bound.

External Market Factors

Several external factors also provide context for the currency's movement. The US Dollar index was trading with minimal change at 99.64 as of 9:05 a.m. on Tuesday.

In commodity markets, Brent crude prices showed a slight rebound from a recent losing streak. As of 11:00 AM., the global benchmark had risen nearly 1.58%, trading in the green at approximately $61.18 a barrel. Brent has recovered a bit to USD 61 per barrel after dropping below 60 on OPEC's decision to go ahead with prediction hikes despite such suppressed levelS. Energy prices can often influence currency valuations, particularly for economies that are significant importers of oil.

The opening dip on Tuesday indicates potential volatility for the Rupee, though the anticipated trading range suggests analysts expect the currency to consolidate within certain levels in the near term.

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