Rupee Rebounds 33ps To 86.65/$

Mumbai: The rupee appreciated 33paise to close at 86.65 against the US dollar on Thursday, supported by the weakening of the American currency in the overseas market. Forex traders said there is a negative bias for the USD/INR pair amid a muted trend in domestic equities and the unabated foreign fund outflow is weighing on investor sentiments.

At the interbank foreign exchange, the rupee opened at 86.88 and touched the high of 86.58 and a low of 86.88 against the greenback during intraday. It ended the session at 86.65 against the dollar, logging a gain of 33paise from previous close. On Tuesday, the rupee depreciated 10paise to close at 86.98 against US dollar.

The forex market was closed on Wednesday on account of ‘Chatrapati Shivaji Maharaj Jayanti’. “The Indian rupee gained strength after lingering within a confined range for the past five days. This ascent was propelled by foreign banks dollar selling and the persistent unwinding of long positions by market players,” said Dilip Parmar, Research Analyst, HDFC Securities.

The market dynamics for the rupee are progressively enhancing as the US dollar falters against both major and regional currencies. In the short term, the spot USD/INR has support between 86.30 and 86.20, while 87.40 remains a strong resistance level to overcome.