Rupee Recovers 70ps To 85.25/$

Mumbai: The rupee snapped its three-day losing streak and settled for the day higher by 70 paise at 85.25 against the US dollar on Friday, on a sharp fall in the dollar index and surge in domestic equities, amid rise in risk appetite for riskier assets.

Forex traders said, the rupee which had lost 53 paise in the last three trading sessions, settled with significant gains on Friday largely supported by the weakness of the American currency in the overseas market. However, a slight recovery in crude oil prices and foreign fund outflows capped the appreciation bias in the local unit to some extent. At the interbank foreign exchange market, the rupee witnessed heavy volatility. It opened at 85.95 then touched an intra-day high of 85.11 and a low of 86.10 against the US dollar.

The domestic unit settled for the day at 85.25 (provisional), higher by 70 per cent over its previous close. On Thursday, the rupee depreciated 36 paise to close at 85.95 against the US dollar. “We expect the rupee to trade with a positive bias on underlying weakness in the US dollar index and improved global risk sentiments.