Rupee Gains Third Day as Crude Drop Eases Import Cost

The rupee strengthened for a third consecutive session, supported by a decline in crude oil prices that reduces India's import bill, traders said. Brent crude fell about 2% over the period, with the move accelerating after a breakdown toward the 200-day moving average, as detailed in Crude Oil Breakdown Extends Toward 200-Day Moving Average at $74.

India imports roughly 85% of its crude oil. Lower oil cuts the dollar demand from importers that typically weighs on the currency. The rupee had lost about 3% since January before this three-day rebound.

The Reserve Bank of India has been selling dollars in the spot market to slow the rupee's depreciation. A cheaper energy bill reduces the need for such intervention, preserving foreign-currency reserves. India's reserves stood at about $650 billion as of the latest week, down from a peak near $700 billion, two traders said.