Rupee rises 14ps to 90.33/$

Mumbai: The rupee appreciated 14paise to close at 90.33 against the US dollar, on trade deal optimism and overnight decline in commodity prices, even as the upside remained capped as investors look for more clarity on the India-US trade deal. Forex traders said significant corporate dollar demand and a weak trend in domestic equities restricted the upside for the local unit.

Notwithstanding the trade-deal optimism, forex traders said market participants are now shifting focus from celebration to verification as no official documents have been released, and neither side has formally published the final terms. Moreover, investors are awaiting cues from Friday’s RBI interest rate announcement.

At the interbank foreign exchange, the rupee opened at 90.52 and touched an early high of 90.06 and a low of 90.53 against the greenback. The domestic unit finally settled at 90.33, higher by 14paise from its previous close.

“We expect the rupee to trade with a positive bias amid optimism over the India-US trade deal, despite more clarity over the terms of the deal. However, weak domestic markets and a strong Dollar may cap sharp upside,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Choudhary further noted that “elevated crude oil prices and tensions between the US and Iran may also pressurise the rupee at higher levels.