Re rises 12 paise to 82.05/USD
image for illustrative purpose
New Delhi: The rupee gained 12 paise to close at 82.05 against the US dollar on Monday, as domestic equity benchmarks scaling all-time high levels and weakness in the American currency overseas boosted investor sentiments.
Besides, steady foreign fund inflows into domestic capital markets also supported the local unit, forex traders said. At the interbank foreign exchange market, the local unit opened at 82.14 against the US dollar and settled 12 paise higher at 82.05 (provisional) against the previous close. During the day, the domestic unit witnessed an intra-day high of 82.03 and a low of 82.20. On Friday, the rupee had closed at 82.17 against the dollar. The rupee traded with a slight positive bias on positive domestic markets and a soft dollar. The domestic equity market touched fresh all-time highs, boosting the domestic currency.
“The US dollar is trading near its lowest levels in 15 months on rising odds of just one more rate hike by the US Federal Reserve due to faster-than-expected cooling in inflation, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.
“We expect the rupee to trade with a slight positive bias on account of the rise in risk appetite in global markets and the weakness in the US Dollar. A decline in crude oil prices and foreign inflows may also support the rupee.
