Rupee rises 12ps to 90.26/$

New Delhi: The rupee appreciated 12paise against the US dollar on Thursday, despite the broad strength of the American currency in the overseas market on suspected intervention by the Reserve Bank of India (RBI).

Forex traders said Brent crude oil prices hovering near USD 59 per barrel supported the domestic unit at lower levels. However, a recovery in the dollar index and weak domestic markets capped sharp gains. At the interbank foreign exchange, the rupee opened at 90.35 against the US dollar, then recovered some lost ground to touch an intra-day high of 90.04, registering a 34 paise gain from its previous close.

At the end of trading session on Thursday, the rupee was quoted at 90.26 (provisional), registering a gain of 12 paise over its previous close. On Wednesday, the rupee recovered 55 paise from its all-time low to close at 90.38 against the greenback.

“The rupee appreciated against the US dollar amid selling of dollars by the Reserve Bank of India. The RBI reportedly intervened in the forex markets and sold dollars to prevent further side in the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan. Choudhary further noted that “we expect the rupee to trade with a negative bias on FII outflows on the back of delay in trade deal between India and US. Recovery in US dollar index and rebound in crude oil prices may also pressurise the rupee”.