Rupee rises 17ps to 89.88/$
US Dollar is expected to remain weak on expectations of rate cut by Fed in Dec
Rupee rises 17ps to 89.88/$
Mumbai: The rupee pared its initial losses and settled for the day in the positive territory, up 17paise at 89.88 (provisional) against the US dollar on Tuesday, as American currency and crude oil prices retreated from their elevated levels.
Forex traders said the weakness of the US dollar in the overseas market, amid expectations of a US Fed rate cut in December, supported the rupee at lower levels. However, a negative trend in domestic equities and foreign fund outflows weighed on investor sentiment, limiting the local unit’s appreciation.
Moreover, investors are in a wait-and-watch mode, and market participants are awaiting clarity from the US Federal Reserve before taking decisive positions. At the interbank foreign exchange market, the rupee opened at 90.15 against the US dollar, down 10 paise from its previous close.
The domestic unit recovered losses and settled for the day in the positive territory at 89.88 (provisional), up by 17 paise from its last close. On Monday, the rupee settled at 90.05 against the US dollar.
Anuj Choudhary, Research analyst, Mirae Asset ShareKhan, said the rupee recovered from lower levels on likely intervention by the RBI and overnight decline in crude oil prices. However, weak domestic markets and a slight recovery in the US dollar index capped sharp gains.
