Rupee Rises 5ps To 86.55/$

Mumbai: The rupee appreciated 5paise to close at 86.55 against the US dollar on Monday, as an overnight decline in crude oil prices and the US dollar index supported investor sentiments. Besides, a positive trend in domestic equities also helped the local currency, Forex traders said the rupee is likely to trade within a volatile range of 86.20-86.80 ahead of key events in the global and domestic economic landscape. At the interbank foreign exchange, the rupee opened on a strong note at 86.48 against the greenback.

During the day, the local unit touched an intraday high of 86.46 and a low of 86.57. It finally closed at 86.55, a rise of 5paise against the US dollar. In the previous session on Friday, the rupee settled at 86.60. According to Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, the rupee strengthened against the greenback on the weak tone in the US Dollar index and positive domestic markets.

Overnight decline in crude oil prices also supported the rupee. “We expect the rupee to remain weak on underlying strength in the US Dollar and importer demand for Dollars. However, any further correction in crude oil prices and extended gains in the domestic markets may support the rupee at lower levels,” Choudhary said. The US markets will remain closed due to the Martin Luther King Junior Day holiday. USD-INR spot price is expected to trade in a range of 86.40 to 86.75. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading down 0.17 per cent to 109.16.