Rupee gains 3ps to 85.33/$

Mumbai: The rupee pared most of its initial gains to settle 3paise higher at 85.33 against the American currency on Tuesday, due to rising appetite for riskier assets amid easing trade tariff tensions. However, rising crude oil prices, a strong US dollar and the emergence of profit booking in domestic equities restricted the rise of the domestic unit, traders said. At the interbank foreign exchange, the domestic unit opened at 84.70 and moved between the intra-day high of 84.62 and the low of 85.48 against the greenback.

The unit ended the session at 85.33, registering a gain of 3paise over its previous closing level. On Friday, the rupee pared its initial losses and settled for the day higher by 22paise at 85.36 against the US dollar. The foreign exchange market was closed on Monday on account of Buddha Purnima. US and Chinese officials said Monday they had reached a deal to roll back most of their recent tariffs and called a 90-day truce in their trade war for more talks on resolving their trade disputes.

“We expect the rupee to trade with a positive bias amid de-escalating geopolitical tensions between India and Pakistan. Rise in risk appetite in global markets amid easing trade tariff tensions between the US and China,” said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.