USD/INR reverses sharply to test key support near 72.40

The Indian National Rupee (NR) rebounded sharply versus its American counterpart on Tuesday, knocking-off the USD/INR cross back to test the key support placed near 72.40 region.

The renewed strength in the Rupee can be mainly attributed to the latest decline in oil prices after the US President Trump urged Saudi and the other OPEC producers not cut oil output in the coming months.

Moreover, fresh US dollar selling across the board on improved risk sentiment amid the US-China trade talks optimism also offered some support to the Indian currency.

On Monday, the Rupee slipped by 54 paise to hit an intraday low of 73.04 against the dollar after crude oil prices jumped more than 1.5% following top exporter Saudi Arabia announcement that a supply cut in December.

At the press time, USD/INR drops -0.45% to trade near 72.60 levels, unable to sustain above the 73 handle.