The rupee gained 3 paise to 95.34 as the dollar index slipped below 100 and Brent crude stayed below $85. The RBI's MPC decision Wednesday is the next catalyst.
Alpha Score of 58 reflects moderate overall profile with strong momentum, poor value, weak quality, moderate sentiment.
The rupee opened flat Tuesday and gained 3 paise to 95.34 against the dollar. Support from a weaker dollar index and lower oil prices offset importers' demand, traders said.
At the interbank market, the rupee opened at 95.35 and touched 95.34, up from Monday's close of 95.47. The dollar index slipped below the psychologically important 100 level, trading at 99.99. The greenback remained under pressure after recent soft U.S. inflation data reinforced expectations of a more accommodative Federal Reserve, said Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP.
Brent crude oil futures rose 1.15% to $84.73 a barrel, well below the $100 highs seen in July. The decline was driven by easing Middle East tensions and expectations of higher OPEC+ production, Bhansali said. Lower oil prices reduce India's import bill and support the rupee.
Foreign portfolio investors bought a net Rs 922.26 crore of Indian equities on Monday, exchange data showed. The Sensex climbed 97 points to 78,736.20 in early trade, while the Nifty fell 173.95 points to 24,600.35.
The rupee is likely to trade in a 95 to 95.50 range this week, Bhansali said. The market is waiting for the Reserve Bank of India's monetary policy decision on Wednesday, which will set the near-term direction for the currency. The RBI has been active in the foreign exchange market, receiving premiums to smooth volatility, he added.
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