Rupee rises for 3rd day

New Delhi: Rising for the third straight session, the rupee gained 19 paise to 82.22 (provisional) against the US dollar on Wednesday, as weakness in the American currency overseas and steady foreign fund inflows boosted investor sentiment.

However, a surge in crude oil prices capped the gains in the local unit, forex traders said. At the interbank foreign exchange market, the local unit opened at 82.29 against the US dollar and settled 19 paise lower at 82.22 (provisional) against the previous close. During the day, the domestic unit witnessed an intra-day high of 82.23 and a low of 82.32. This is the third straight day of rise for the rupee, during which it has gained 44 paise. On Tuesday, the rupee had closed at 82.41 against the dollar.

“The US dollar declined on expectations that a slowdown in inflation may lead to a slower pace of rate hike by the US Federal Reserve, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

Though the US central bank may hike rates in July, a further rate rise in September may be data dependent, Choudhary said. “We expect the rupee to trade with a slight positive bias, weakness in the US dollar and improved global risk sentiments. Sustained foreign inflows may also support the rupee while a rise in crude oil prices may cap a sharp upside,” Choudhary said.