Re gains for 2nd consecutive day

Mumbai The rupee appreciated by 5 paise to close at 81.96 against the US dollar on Thursday amid weak American currency against major rivals overseas.

Buying in domestic equities by foreign institutional investors and easing crude oil prices also weighed in favour of the rupee, analysts said. On the other hand, further interest rate hikes indicated by US Federal Reserve chair Jerome Powell on Wednesday ahead of the Federal Open Market Committee’s (FOMC’s) policy decision, put pressure on the greenback. “Dovish comments from FOMC officials Raphael Bostic and Austan Goolsbee put further downside pressure on the dollar. FII inflows also supported the local currency. However, weak domestic markets and overnight gains in crude oil prices capped sharp gains,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.