Oil fall lifts Indian rupee to over one-week high after central bank keeps lid on losses

Business Recorder reported that the Indian rupee moved up to its strongest point in more than a week on Tuesday, aided by cheaper oil. The currency ended the session at 95.4125 per dollar, a gain of 0.3% from the prior close of 95.7450. Most of the day it traded between 95.70 and 95.75, with the advance coming late.

Brent crude slipped more than 3% to $89.2 a barrel, and traders reacted to fresh US sanctions warnings aimed at Iran, judging economic pressure less threatening to supply than a military escalation. Washington told countries to sever business ties with Iran or face secondary sanctions, but the Treasury Department has not imposed any penalties yet. Likely Reserve Bank of India intervention, similar to recent sessions, also limited the currency's losses, and repeated central bank action has kept the rupee among Asia's least volatile units over two weeks.

Elsewhere in Asia, regional currencies were slightly weaker, and the dollar index slipped just under the 99 level. Investors are now looking ahead to Friday, when Federal Reserve Chair Kevin Warsh is due to speak on the outlook for US interest rates. ANZ analysts said the Fed appears to be on an extended hold, but progress on inflation is still needed and rate increases cannot be ruled out.