Re Rises 3 Paise To 86.59/$
Re Rises 3 Paise To 86.59/$
Mumbai: The rupee pared initial losses and settled for the day higher by 3 paise at 86.59 (provisional) against the US dollar, as the support from positive domestic equities was negated by unabated foreign fund outflows and month-end dollar demand.
Forex traders said the rupee continued to face pressure due to sustained foreign fund outflows and the broad strength of the American currency in the overseas markets due to unabated dollar demand from oil importers and weak risk appetite. At the interbank foreign exchange, the rupee opened on a weak note at 86.63 and touched a high of 86.59 and a low of 86.65 against the American currency during the session. The local unit moved in a narrow range and settled at 86.59 (provisional), higher by 3 paise over its previous close. On Thursday, the rupee depreciated 7 paise to close at 86.62 against the US dollar.
“Indian Rupee declined today on month-end dollar demand from importers and FII outflows. A positive tone in the US dollar also pressurised the rupee. However, positive domestic markets cushioned the downside,” said Anuj Choudhary, research analyst at Mirae Asset Sharekhan.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.46 per cent higher at 108.29. Brent crude, the global oil benchmark, was quoted 0.44 per cent lower at $76.53 per barrel in futures trade.