Rupee vs US Dollar: INR rebounds from record closing low versus USD

Crude oil benchmarks eased on Friday, weighed down by demand concerns, but are on track to post weekly gains. At the last count Brent crude futures were trading half a percent lower at $89.42 per barrel. WTI futures, too, were trading 0.66 percent lower at $86.3 per barrel.

"Despite having a bundle of negative pointers on the global front, the Rupee managed to remain well near the 83.20 mark, probably because RBI’s small but regular intervention in onshore and offshore both helped not to depreciate beyond an all-time low," said Amit Pabari of CR Forex.

Pabari lists multiple factors, some in favor of downside gap in the pair, and others which can result in a bullish gap in USD-INR.

Equity sentiment, FPI support, strong domestic fundamentals, country's economic growth and RBI intervention are supporting the Indian currency. On the other hand, global economic situation might lead to a bullish scenario. In case stop losses are hit around the psychologically significant level of 83.25 in the onshore markets, and the RBI permits a modest depreciation, this could enhance the competitiveness of Indian exports and potentially result in an upward price gap, Pabari explained.