Rupee recovers 10ps to 82.21/$

The rupee appreciated by 10 paise to 82.21 against the US dollar on Tuesday, as the American currency retreated from its elevated levels. Forex traders said significant foreign fund inflows and easing crude oil prices also supported the local unit. At the interbank foreign exchange market, the local unit opened at 82.22 against the US currency and moved between a high of 82.16 and a low of 82.29 in the day trade. The local units settled at 82.21 (provisional), registering a gain of 10 paise over its previous close. On Monday, the rupee closed at 82.31 against the US currency. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.14 per cent to 102.28. Global oil benchmark Brent crude futures fell 0.29 per cent to $75.01 per barrel.

“A weaker greenback, strong foreign fund inflows and lower crude oil prices pushed the rupee higher after falling in the last three days,” said Dilip Parmar, research analyst, HDFC Securities.

The local unit outperforms Asian currencies as the trade deficit narrows to a 21-month low. Though the rupee outperformed among Asian currencies, the range remained narrow ahead of US debt ceiling talks.