Rupee jumps 21ps to 87.87/$

Mumbai: Rising for the second straight session, the rupee surged 21 paise to close at 87.87 (provisional) against the US dollar on Thursday, buoyed by a softer American currency against major currencies and renewed risk-on sentiment among investors.

Forex traders said that likely intervention by the Reserve Bank of India and a firm trend in domestic equities further enthused investors. At the interbank foreign exchange, the rupee opened below the 88-mark at 87.76 against the greenback, and touched an intraday high of 87.68 per dollar.

The domestic unit finally settled at 87.87 (provisional) against the greenback, registering a rise of 21 paise over its previous close. On Wednesday, the rupee bounced back sharply by 73 paise to close at 88.08 against the US dollar, posting its biggest intraday gain in nearly four months.

“The rupee notched a second consecutive day of gains, buoyed by a softer dollar against major currencies and a broader shift towards risk-on sentiment. Foreign fund inflows and strategic central bank intervention provided a significant tailwind to the currency’s recent advance,” said Dilip Parmar, Research Analyst, HDFC Securities.

Parmar further said that ahead of the forthcoming holiday, the rupee is poised to tread water within a constrained range. However, its subsequent direction hinges entirely upon the dynamics of dollar flows and any tectonic shifts in the global geopolitical landscape.