Rupee Rises 17ps To 85.40/$

Mumbai: The rupee appreciated 17paise to settle at 85.40 against the US dollar on Monday, on weak US dollar index and a decline in crude oil prices. Forex traders said global investors were also cautious as global rating agency Moody’s downgraded US investment grade rating, leading to a fall in dollar index. At the interbank foreign exchange, the domestic unit opened at 85.43 and moved between the intra-day high of 85.35 and the low of 85.61 against the greenback. The unit ended the session at 85.40 (provisional), registering a gain of 17 paise over its previous closing level. On Friday, the rupee pared its gains and settled 3 paise lower at 85.57 against the dollar. “We expect the rupee to trade with a positive bias amid persistent weakness in US dollar index and a weak tone in global crude oil prices,” Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan said, adding weak domestic equities capped a sharp upside. “USD-INR spot price is expected to trade in a range of 85.10 to 85.65,” he noted. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.86 per cent at 100.22. The US dollar weakened as Moody’s downgraded US credit rating to AA1 from AAA.