Rupee posts biggest 1-day gain in a month as oil drops to $69
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The rupee closed 78 paisa stronger from its previous close at 85.97 per dollar - its biggest single-day rise in a month, as oil prices fell to $69 per barrel. The rupee had closed at 86.75/$1 on Monday. The renewed sentiment comes after a ceasefire between Israel and Iran went into effect, reviving demand for risk assets in the emerging markets Oil prices fell at $69 per barrel, down more than 15% from a five-month high of $80 per barrel hit just a day earlier, according to Reuters.The rupee traded in the range of 86.27/$1 and 85.91/$1, LSEG data showed.'Anchor investors for HDB Financial Services sold dollars around 86.27/$1, (rupees weakest level on Tuesday) while importers bought dollars at 85.91 levels, keeping the rupee in a narrow range,' said Anil Bhansali, head of treasury, Finrex Treasury Advisers.The strength in the currency also caused some traders to exit from their bets against the rupee.'Some long rupee traders saw unwinding today, which further helped strengthen the rupee,' a trader from a state run bank said.'From our perspective, shorting USD/INR looks quite attractive given the existing and meaningful divergence with oil prices,' MUFG Bank said in a note on Tuesday.Asian currencies appreciated between 0.1% and 1.7% on Tuesday , LSEG data showed.If oil prices remain around the $70 per barrel mark, market participants expect the rupee to strengthen towards 85.50 per dollar mark in this week
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