The rupee appreciated by 11 paise to 85.93 against the US dollar in early trading on Tuesday, despite headwinds from a weak start in domestic equities, rising global crude oil prices, and a stronger dollar.
At the interbank foreign exchange market, the rupee opened at 85.96 before strengthening further to 85.93, up from its previous close of 86.04 on Monday.
Commenting on the trend, Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said, “If the rupee closes above 86.20 today or in the coming sessions, importers may trigger stop losses, potentially pushing the dollar up to 86.70. However, the Reserve Bank of India’s intervention near the 86.20 level, where it has been actively selling dollars, continues to provide stability to the rupee.”