Rupee rises 10ps to 88.69/$

Mumbai: The rupee appreciated 10 paise to close at 88.69 (provisional) against the US dollar on Friday, on strength in the domestic markets and broad weakness in crude oil prices. Forex traders said the rupee gained on strong domestic markets and overnight decline in commodity prices. Intervention by the central bank also supported the domestic currency.

However, a strong US dollar capped sharp gains, they added. At the interbank foreign exchange, the rupee opened at 88.80 and traded in the range of 88.50-88.80 before settling at 88.69 (provisional), 10 paise higher than its previous close.

On Thursday, the rupee closed at 88.79 against the greenback. “We expect the rupee to trade with a positive bias on strength in the domestic markets and broad weakness in crude oil prices. US government shutdown and rising odds of a rate cut by the US Federal Reserve may further strengthen the rupee,” said Anuj Choudhary, Research Analyst, Currency and commodities, Mirae Asset ShareKhan.

Choudhary further added that “a strong US dollar and importer demand for dollars may cap sharp upside. USD-INR spot price is expected to trade in a range of 88.40 to 88.85”. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21 per cent lower at 99.32, as safe-haven demand for dollars continues keeping the dollar well bid.

Meanwhile, Foreign Institutional Investors bought equities worth Rs 1,308.16 crore on Thursday, according to exchange data.