Rupee gains for third day as crude eases, but volatility persists

This local currency gained for the third day in a row, on softer fuel prices even as geopolitical tensions continued to keep the market edgy.

“However, it hasn’t been a one-way street. Sustained dollar outflows and heavy dollar demand from domestic importers kept aggressive gains in check, creating a fascinating tug-of-war in the rupee market,” HDFC Securities senior research analyst Dilip Parmar said.

The rupee opened the day at 95.81 a dollar and gained to 97.7175 but weakened to as much as 95.8575 during the day on dollar demand.

The volatility would continue going forward as the Middle East conflict continues and on account of the likely imposition of tariffs by US on India, forex market consultant KN Dey said.