Analysts say if crude prices hold current levels, that could support the rupee going forwardThe rupee moved42 paise higher against the dollar to hit 73.15 in early trade on Wednesday.
Gains in the rupee came a day after crude oil prices registered their biggest single-session fall in three months.Selling of the greenback by exporters amid sharp losses in crude oil prices supported the rupee, say analysts.
Strong gains in the domestic equity markets, with the Sensex jumping more than 350 points, also supported the currency."The rupee could outperform its peers if crude prices manage to sustain at current levels," said IFA Global, aforex advisory firm.Crude oil prices clawed back a fraction of their hefty losses the day before that came after Saudi Arabia said it would make up for supply disruptions from US sanctions starting next month on Iran's petroleum exports.Brent crude oil futures - the international benchmark for crude oil - were trading 28 cents, or 0.4 per cent, higher at $76.72 a barrel at 8:50 am.Brent had closed down 4.3 per cent in the previous session.IFA Global expects the rupee to move in a likely range of 73.00-73.38 with a downside bias against the greenback.The rupee had closed nearly unchanged at 73.57 against the US currency on Tuesday.