Rupee gains as dollar index drops to four-month low. Indian rupee strengthened on Tuesday supported by likely intervention by the central bank and a rise in Asian currencies. The dollar weakened to its lowest level since November against major peers. The rupee closed at 87.2125 against the U.S. dollar, up 0.1% on the day. It had declined to 87.3850 earlier in the session, as dollar bids spurred by the maturity of positions in the non-deliverable forwards (NDF) market exerted pressure. But later in the day, the rupee benefited from weakness in the dollar, with the dollar index down 0.5% at 103.3 while Asian currencies rose. The offshore Chinese yuan led gains, up0.4% onThe day. Investors now await the release of U.s. and India’s consumer inflation data, due Wednesday. The data is expected to influence expectations of rate cuts by the countries’ central banks.