This is why rupee has strengthen against US dollar today

The Indian rupee on Monday eased down below 68 level against US benchmark dollar index at interbank forex market. In early opening, the domestic currency strengthened by 39 paise to 67.39 against the American currency on fresh selling of the greenback by exporters and banks. So far in May month, the rupee has continued to depreciate against the US dollar and  has now weakened by over 6% so far this year. This places the rupee among the worst performing major Asian currencies in 2018. 

At around 1245 hours, the Indian rupee was trading at 67.455 above 0.270 points or 0.40% against dollar index. 

Dealers in a PTI report said dollar's weakness against some other currencies overseas, on cooling global crude prices, and early gains in domestic equity markets supported the rupee.

On Monday, the Brent crude futures slipped as much as 2.6% to $74.49 per barrel, their lowest level in about three weeks. They last stood at $75.00, down 1.8%. 

Analysts at Axis Direct said, "USDINR opened on a flat note however selling pressure throughout the session led USDINR downwards to end near the low of the day. USDINR closed at 67.76 with a loss of 0.86 %." 

They added, "On the daily chart USDINR has formed a sizable Bearish candle forming lower High-low compare to previous session and has closed below previous session's low indicating negative bias USDINR continues to move in a Higher Top and Higher Bottom formation on the daily chart indicating positive bias. Currently USDINR is sustaining above its 20 and 50 day SMA which support bullish sentiments in near term." 

In previous trading session, the rupee reversed the 16-month low mark and finished at 67.736 above 0.78% against dollar. Last week, the domestic unit had touced 68.660 per dollar level which was last seen in January 2017. 

Moreover, the benchmark BSE Sensex was trading at 35,169.02 above 244.15 points or 0.70% on Monday, however in early opening the index surged by 156.67 points, or 0.44% to 35,081.54. On the other hand, the Nifty 50 was trading at 10,691.05 higher by 85.90 points or 0.81%. 

Overall on today's trading session, Axis said, "If USDINR crosses and sustains above 67.80 levels it would witness buying which would lead USDINR towards 67.90-68 levels. However if USDINR breaks below 67.65 level it would witness selling which would take USDINR towards 68.50-68.40."