Oil relief to revive rupee rally, US yields surge could act as brake

Business Recorder reported that the Indian rupee could resume strengthening on Wednesday, with traders expecting an opening between 93.70 and 93.74 per dollar. It had closed at 93.93275 on Monday, while Indian financial markets were closed the following day for a local holiday.

Oil prices have eased, with Brent falling below $90 a barrel on Tuesday for the first time since August, after US officials played down the prospect of further military action against Iran. The rupee has gained more than 3% from recent lows with support from Reserve Bank of India measures and renewed foreign equity inflows, but higher US Treasury yields after stronger-than-expected October inflation could constrain its advance. The report also notes that the stronger rupee level could attract importers.