The rupee rose 26 paise to close at 85.68 (provisional) against the US dollar on Tuesday on the back of a decline in global crude oil prices and a weaker greenback.
Foreign fund inflows and firm domestic equity markets further boosted the rupee, according to forex traders.
At the interbank foreign exchange, the rupee opened at 85.75 against the US dollar and traded in a narrow range of 85.64-85.80 before settling at 85.68 (provisional)up 26 paise from the previous close.
The local unit logged a steep fall of 54 paise to settle at 85.94 against the US dollar on Monday.
Also Read: Dubai’s Golden Visa: What the New Residency Route Really Means For Indians
The rupee was range bound with chances of a US-India (pact) being concluded today (Tuesday), keeping rupee on an upward trend. The closing was slightly higher but a conclusive mini-trade deal could allow rupee to gain once again towards 85.30/40 levels,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
The local unit is expected to be in the range of 85.30-86.00 on Wednesday with expectations of some positive developments tonight, he said.
Brent crude, the global oil benchmark, was down 0.55 per cent to USD 69.20 per barrel in futures trade.
Also Read: Oil Prices Dip As Traders Weigh US Tariffs And OPEC+ Output Increase
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.18 per cent to 97.30.
Meanwhile, at the domestic equity market, the Sensex rose 270.01 points to settle at 83,712.51, while the Nifty gained 61.20 points to close at 25,522.50.
Foreign institutional investors (FIIs) purchased equities worth Rs 321.16 crore on a net basis on Monday, according to exchange data.Â
(This report has been published as part of the auto generated syndicate wire feed.Apart from the headline,no editing has been done in the copy by ABP Live.)
Â
