MUMBAI, Oct 17 (Reuters) - The Indian rupee was marginally stronger on Tuesday, aided by a slight pullback in crude oil prices, but buoyant local demand for the U.S. dollar is likely to hold the local unit in a narrow range.
The rupee was at 83.2375 against the dollar as of 10:55 a.m. compared with a close at 83.2775 in the previous session, which marked its lifetime closing low.
Brent crude oil futures dipped below $90 per barrel on Monday and were last quoted lower at $89.53, aided by expectations that the United States and Venezuela could soon reach a deal easing sanctions on Venezuelan crude exports, thereby easing supply concerns.
The dollar index was little changed at 106.32, while Asian currencies were trading mixed.
Volumes were relatively muted in the early part of the spot trading session as investors await directional move on either side, a foreign exchange trader at a state-run bank said.
The rupee has been trading between 83.15 and 83.28 in nine out of the 10 most recent sessions.
While moves towards further weakness have been prevented by likely intervention by the Reserve Bank of India, there is also persistent local demand for dollars when the rupee gains thereby limiting the upside on the local unit, traders said.
The local unit is unlikely to rise much and will take its cues from oil prices and further developments in the ongoing Middle East conflict, said Anindya Banerjee, head of foreign exchange research at Kotak Securities.
Investors will also keep an eye on U.S. retail sales data due later in the day for further cues on how the world's largest economy is faring.
Federal Reserve Bank of Philadelphia President Patrick Harker said on Monday the central bank should not create new pressures in the U.S. economy by raising rates further. (Reporting by Jaspreet Kalra; Editing by Sohini Goswami)
