Overview

• The Indian rupee closed at 84.33 against the US dollar on May 5, supported by a sharp decline in crude oil prices and robust foreign institutional investments.
• Brent crude prices fell nearly 4% after OPEC+ announced increased production, easing India's import bill and bolstering the rupee's position.
• India's forex reserves have risen for eight consecutive weeks, reaching $688.13 billion by the week ending April 25, providing additional support to the currency.
• Despite favorable domestic factors, a firmer dollar index and potential geopolitical tensions at India's borders pose risks to the rupee's stability.
• Analysts project the rupee to consolidate within the range of 84.40 to 84.90, with technical support at 84.40 and resistance near 84.90.