Rupee strengthens as crude oil prices fall

Mumbai: The Indian rupee closed at 95.84 per dollar Tuesday, extending Monday's sharp gains as Brent crude prices fell another 3% to around $85 a barrel.

Traders said the currency was further supported by dollar sales from the Reserve Bank of India (RBI) in both the onshore spot and offshore markets, which accelerated the positive momentum. The rupee had settled at 95.91 per dollar in the previous session. Further upside in the currency was capped by a firm dollar index ahead of the US Fed's policy meeting on Wednesday. The rupee opened at 95.76 and traded in the range of 95.87 and 95.62 per dollar. The rupee has returned to the 95-per-dollar handle after spending more than a week under pressure from elevated oil prices, which had pushed it close to record low levels last week.

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The currency is expected to trade between 95 and 96 on Wednesday, as traders would likely refrain from taking large bets ahead of the US Fed decision on rates.