The Indian rupee is expected to gather further gains tracking weakness in dollar overseas although rising international crude oil prices could limit upside. Crude oil is hovering above $71 per barrel, a five week high. Meanwhile, local shares are seen opening on a cautious note Tuesday ahead of U.S. reciprocal tariff announcements on its trading partners, which are due to be imposed on Wednesday, April 2nd. Indian currency and equities markets were closed on Monday for Eid Ul Fitr, which marks the month-long fasting period of Ramadan. The benchmark 30-share BSE Sensex ended the month of March with a 5.8 percent gain and the Nifty surged 6.3 percent, recording their best monthly gains since their peak levels of September 2024 as FIIs turned net buyers over the past few days. Meanwhile, rupee appreciated 24 paise to close at 85.50 against the US dollar on Friday, logging the best monthly gain in over six years, supported by a resurgence of foreign fund inflows. In March this year the local unit appreciated 2.17 per cent, the maximum since November 2018 when the local unit had registered a gain of over 5 per cent. In the current financial year the rupee has depreciated more than 2 per cent. On April 2, 2024 it was quoted at 83.42 against the US dollar.

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