Rupee closes 4ps higher at 88.11/$

Mumbai: The rupee recovered slightly from its record low level and ended with a gain of 4paise at 88.11 against the US dollar on Wednesday aided by strong foreign fund inflows and a weaker greenback.

Hopes of a breakthrough in India-US trade talks and positive sentiments in domestic equity markets supported the local unit while rise in crude oil prices capped gains, forex traders said. At the interbank foreign exchange, the rupee opened at 88.14 against the US dollar and traded in a narrow range of 88.06-88.19 before settling at 88.11, up 4paise from its previous close.

The rupee had pared initial gains and dropped 6paise to revisit its record low of 88.15 against the US dollar on Tuesday. On Friday, the rupee touched the lowest-ever intra-day level of 88.38 but pared losses to settle 3paise higher at Rs88.09 against the US dollar.

“The rupee was within a range as US President Donald Trump said tariff talks between India and the US are on, while on the other hand he asked Europe to impose 100 per cent tariffs on buyers of Russian oil, which he would then reciprocate,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.