Rupee Rises 38ps To 85.03/$

Mumbai: The rupee appreciated 38paise to close at 85.03 against the US dollar on Monday, supported by sustained foreign fund inflows, easing crude oil prices and a bullish trend in domestic equities.

Forex traders said strong domestic fundamentals, such as rising forex reserves also boosted investor sentiments. At the interbank foreign exchange, the domestic unit opened at 85.29 and moved between the intra-day high of 84.96 and the low of 85.42 against the greenback. The unit ended the session at 85.03, registering a gain of 38paise over its previous closing level.

On Friday, the rupee settled lower by 8paise at 85.41 against the US dollar. Forex traders said a steady rise in reserves enhances India’s import cover, providing a crucial buffer against external shocks and lending stability to the rupee.

However, the rupee could face pressure amid any escalation in tensions between India and Pakistan as geopolitical uncertainties like these tend to drive investors toward safer assets, causing outflows from emerging markets and weakening local currencies like the rupee. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.13 per cent at 99.60.