Rupee Gains 16ps To 85.29/$

Mumbai: After a two-day pause, the rupee gained 16paise to 85.29 against the US dollar on Thursday, on weak greenback and overnight decline in crude oil prices. Forex traders said the rupee strengthened on the weak US dollar and overnight decline in crude oil prices amid slowing US business activity. The US Treasury yields also declined with the 10-year yield falling 3 basis points to 4.35 per cent. At the interbank foreign exchange, the domestic unit opened at 85.60 and moved between the intra-day high of 85.25 and the low of 85.67 against the greenback.

The unit ended the session at 85.29, registering a gain of 16paise over its previous closing level. On Wednesday, the rupee depreciated 26paise and settled for the day at 85.45 against the US dollar. “We expect the rupee to trade with a positive bias as weakness in the US dollar is likely to remain intact amid trade tariff uncertainties. However, risk-on sentiments in the global markets and FII inflows may support the rupee at lower levels. “Traders may take cues from weekly unemployment claims, durable goods orders and existing home sales data from the US. USDINR spot price is expected to trade in a range of 85 to 85.70,” Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said.