Rupee gains as oil slips but volatility remains high

MUMBAI: The rupee rebounded Tuesday, closing at 91.81 against the dollar, up 54 paise from Monday as oil cooled and equities rebounded amid President Trump’s assurances of West Asia risk being short-lived. Brent crude plunged to below $90.8 a barrel after briefly nearing $120 a day earlier, easing pressure on India’s import bill and lifting the domestic currency.Dealers said falling crude, RBI dollar sales, amid importer hedging supported the rupee, though volatility remained elevated. The rupee opened firm, strengthened through the session on RBI support, and settled over 0.5% stronger. “Rupee traded stronger with gains of 0.5%, moving back above 92, as the dollar index slipped below 99 and crude oil prices corrected sharply. Oil, which had surged close to $119-$120, dropped significantly toward the $85 zone, easing pressure on India’s import bill and providing support to the domestic currency,” said Jateen Trivedi, analyst with LKP Securities.