Rupee Rises 3ps To 85.69/$

Mumbai: The rupee pared its initial losses and settled for the day higher by 3paise at 85.69 against the US dollar on Wednesday, supported by a resurgence of foreign fund inflows. Forex dealers said the rupee is facing renewed pressure on liquidity constraints, concerns over reciprocal tariff implementations and month-end demand for the US currency from importers. At the interbank foreign exchange, the rupee opened at 85.71 then touched an intraday high of 85.68 and a low of 85.98 against the greenback.

The unit ended the session at 85.69 against the dollar, registering a gain of 3paise from its previous closing level. On Tuesday, the rupee snapped its seven-session rally and settled with a loss of 11paise at 85.72 against the US dollar. “The Indian rupee gained strength following a short pause on Tuesday, driven by a resurgence of foreign fund inflows. In addition, foreign banks and exporters played a key role by increasing the supply of dollars into the market,” Dilip Parmar – Senior Research Analyst, HDFC Securities, said.