Rupee rises 6ps to 88.20/$

Mumbai: The rupee witnessed range-bound trading and settled higher by 6paise at 88.20 against the US dollar on Monday, as the domestic unit was caught between worries over US trade tariffs and hopes of a FED rate cut.

Forex traders said, likely intervention of the RBI has helped in controlling volatility and preventing a quick depreciation of the local unit. At the interbank foreign exchange, the rupee opened at 88.25, then touched an intraday low of 88.30 and a high of 88.13 against the greenback during the day.

The domestic unit settled for the day at 88.20, higher by 6paise over its previous close. On Friday, the rupee recovered from all-time lows and settled higher by 9paise at 88.26 against the US dollar. Investors are closely monitoring geopolitical developments, and global trade dynamics will be critical for the local unit going forward.

Market attention has now shifted to what the US FED will do on September 17, with expectations of a rate cut creating uncertainty around the dollar’s future strength, forex traders said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07 per cent to 97.48.