Rupee strength unsustainable; bet on chemicals, OMCs in near-term: Analysts

Whether the recent strength in the currency will sustain or not depends on the monetary policy trajectory of the Reserve Bank of India, foreign flows, and crude oil prices, experts said.

The rupee has firmly recovered over the last two weeks supported by weakening crude oil prices, and the recent halt in foreign investors' exodus from domestic markets.

The currency has also drawn support from the decline in the US dollar index, which has now cooled off to 106 levels from its 20-year high of 108.54 touched in July.

The weakness in the greenback followed expectations of slower rate hikes by the US Federal Reserve in the coming months, and the central bank downplaying recession fears.

On Tuesday, the rupee closed at 78.72/$, gaining the most since June 28, according to Bloomberg data. Though,