Rupee Soars 25ps To 85.49/$

Mumbai: The rupee appreciated 25paise to close at 85.49 against the US dollar on Friday, logging the best monthly gain in over six years, supported by a resurgence of foreign fund inflows. In March this year the local unit appreciated 2.17 per cent, the maximum since November 2018 when the local unit had registered a gain of over 5 per cent. In the current financial year the rupee has depreciated more than 2 per cent. On April 2, 2024 it was quoted at 83.42 against the US dollar. Forex dealers said the domestic unit has witnessed significant appreciation supported by robust foreign fund inflows into the capital market. Foreign investors have infused over Rs32,000 crore in the past six consecutive trading sessions. However, sharp upside for the local unit was restricted by weak domestic markets and rising US dollar. Moreover, investors also grappled with the potential economic impact of growing global trade concerns. At the interbank foreign exchange, the rupee opened at 85.64 then touched an intraday high of 85.40 and a low of 85.70 against the greenback. The unit ended the session at 85.49 against the dollar, registering a gain of 25paise from its previous closing level. On Thursday, the rupee had weakened by 5paise to close at 85.74 against the US dollar. “We expect the rupee to trade with a positive bias on inflows by foreign investors. However, month-end dollar demand from importers and oil marketing companies (OMCs) and elevated crude oil prices may cap sharp upside,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan. Choudhary further noted that “traders may take cues from core PCE price index data from the US. USD-INR spot price is expected to trade in a range of 85.15 to 86.70.”