Rupee Rises 17ps To Close At 85.41/$

Mumbai: The rupee pared its initial losses and settled for the day higher by 17paise at 85.41 against the US dollar on Friday, as likely intervention by the Reserve Bank of India helped contain excess depreciation of the rupee. Forex traders said the rupee opened on a weak note on the escalation of hostility between India and Pakistan, however, RBI intervened to prevent major weakness.

At the interbank foreign exchange, the domestic unit opened at 85.88 and moved between the intra-day high of 85.32 and the low of 85.88 against the greenback. The unit ended the session at 85.41, registering a gain of 17paise over its previous closing level. On Thursday, the rupee saw its steepest single-day fall in more than two-and-a-half years and settled 81paise lower at 85.58 against the US dollar on Thursday, weighed down by heightened geopolitical tensions between India and Pakistan.

“Indian rupee opened weak on Friday amid flaring up of geopolitical tensions across the border. Weak domestic markets and a rise in crude oil prices also weighed on the rupee. “However, the domestic currency recovered in the latter half of the day on reports of selling of dollars by the Reserve Bank of India as well as a correction in the US dollar index,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.