Lower oil prices and fresh incentives for NRI deposits could help reverse pressure on the Indian currency in the coming weeks.The Indian rupee could be headed for a phase of appreciation after months of pressure, supported by a sharp decline in crude oil prices and expectations of significant foreign currency inflows through FCNR(B) deposits, according to Navneet Damani from MOFSL.Speaking to ET Now, Damani noted that the rupee has remained under pressure for an extended period, but recent developments may provide much-needed relief to the currency market.Lower Crude Prices Offer ReliefOne of the biggest factors supporting the rupee is the correction in global crude oil prices. India, being a major oil importer, benefits directly from lower energy costs, which help narrow the trade deficit and reduce pressure on the domestic currency.Damani said, "For the last many-many days, the rupee has been hovering between 92 and 97.5, but now it looks like some breather and some relief is coming in store, primarily because we have seen about a 10% or maybe 12% correction in crude oil prices over the last one week or so."He added that the decline in oil prices comes at a crucial time, providing support to the rupee after months of depreciation driven by elevated energy costs.FCNR Reforms Could Change Currency FlowsApart from crude oil, Damani highlighted recent tax reforms related to NRI and FCNR borrowings as another major catalyst for the rupee.According to him, the policy changes could alter the direction of capital flows, encouraging money to move into India rather than out of it. Banks have also begun introducing new structured products aimed at attracting overseas funds."With the new change in tax reforms towards the NRI and FCNR borrowings, there will now be a new narrative, and it will change the course of the rupee flow, which was moving outwards to now inwards," Damani said.He believes these initiatives could potentially attract between $50 billion and $70 billion in reserves and capital inflows over the next couple of months."The new structured product which many of these banks are launching is expected to bring in about $50 to $70 billion worth of reserves or maybe inflows into the economy, and that looks pretty sizable over the next one-two months. That could bring the rupee onto an appreciating trajectory towards 92-93 levels over the next few days and weeks."Strong Expectations for FCNR(B) InflowsWhen asked whether FCNR(B)-related flows would be meaningful enough to influence the currency market, Damani expressed confidence that they would.He said, "Yes, pretty much substantial because the product looks very lucrative and a lot of money has been sidelined and lying outside India. Now, with this sideways trajectory and rupee appreciation, buyers are getting in. It looks like anywhere between $60 billion to $80 billion worth of flows is what the market estimates could be coming back, and that could probably change the narrative, at least for a quarter or so."Such inflows, if realised, could significantly improve liquidity conditions and provide additional support to the rupee.Oil Stability Remains KeyDamani also emphasized that the sustainability of rupee gains will depend heavily on the trajectory of crude oil prices in the months ahead.He pointed out that average WTI crude prices were around $64-65 per barrel last year, while the average for the first five months of this year remained above $90 per barrel, creating substantial pressure on India's external balances."Last year's average for WTI crude was closer to $64-65, and this year, for the first five months, it was upwards of $90. Now, with crude oil prices coming closer to $80, it looks like much of the pain that we have had over the last few months with depreciation will now be taken care of, or arrested at least for the time being."However, he cautioned that geopolitical developments and the successful implementation of the recently announced agreement would need to be monitored closely before drawing firm conclusions."It has to be seen that the deal holds true. The passage is still not blocked even after the deal has been signed. We will have to wait for one week for more clarity because time and the narrative have changed very sharply. So, I will wait for Friday, when the deal is actually signed, and get some concluding evidence. But for now, it looks like crude oil prices will hover around $75-85, which will be pretty much okay to help an appreciation bias in the rupee."OutlookWith crude oil prices retreating from recent highs and policymakers taking steps to attract overseas capital, the near-term outlook for the rupee appears more constructive than it has in recent months. Market participants will now watch incoming FCNR inflows and global energy prices closely to determine whether the currency can sustain a move toward stronger levels against the dollar.