Today, USD-INR pair is expected to quote in the range of 72.50 and 73.20
Indian rupee trimmed the losses and trading flat at around 72.60 per dollar as it remains volatile during the day amid surging crude oil prices.
It opened lower by 26 paise at 72.89 per dollar versus previous close 72.63.
Caution ahead of the US Federal Reserve's policy meeting outcome Wednesday on likely interest rate hike also weighed on the rupee sentiment.
Brent crude oil rose to the highest level in four years after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by US President Donald Trump for action to raise global supply.
The international benchmark Brent crude breached the USD 81 a barrel mark by surging over 3 percent to trade at USD 81.28 a barrel.
Yesterday, the rupee rose marginally against the US dollar but gains for the currency was short lived after global crude oil prices rallied to fresh highs. Brent crude oil rose to the highest level in four years after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by US President Donald Trump for action to raise global supply, said Motilal Oswal.
Concerns about production shortfalls are encouraging traders to remain long on the commodity. On the other hand, strength in the dollar against its major crosses also weighed on the rupee.
Today, USD-INR pair is expected to quote in the range of 72.50 and 73.20, it added.
With inputs from PTI