The Indian rupee has reclaimed the key level of 71 against the greenback on Tuesday compared to its previous close of 70.93/$.
Notably, the currency opened 16 paise higher at 70.77 against the dollar compared to its previous close of 70.93/$. At 11:10 AM IST, the domestic currency was trading at 70.91/$.
The depreciation could be attributed to increasing crude oil prices in global markets. Both international benchmarks for oil Brent and West Texas Intermediate were trading 1% higher on Tuesday. The gain was on the back of expectations over easing supply glut tensions.
Further, supporting the gain are issues in Libya as the main oil exporting ports are closed due to bad weather.
Further, disappointing economic data also kept rupee down. The consumer price inflation (CPI) in Dec 2018 further cooled to an 18-month low of 2.19% yoy compared to 2.33% in Nov'18, bringing in reason to cheer for the economy. The fall in CPI was mainly on the back of lower fuel prices.
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