Rupee rises 8ps to 88.08/$

Mumbai: The rupee appreciated 8paise to close at 88.08 against the US dollar on Tuesday, tracking US-India talks on the proposed trade agreement to iron out issues in the wake of steep Trump Tariffs.

Forex traders said the rupee strengthened on positive domestic markets and a weak greenback, which is trading at a two-month low ahead of the two-day FOMC meeting commencing Tuesday and disappointing US economic data.

At the interbank foreign exchange, the rupee opened at 88.05, then touched an intraday low of 88.16 and a high of 88.01 against the greenback.

The domestic unit closed at 88.08, a gain of 8paise over its previous close. On Monday, the rupee settled 10paise higher at 88.16 against the US dollar.

“We expect the rupee to remain strong on broad weakness in the US Dollar amid disappointing economic data coming from the US and weak labour market, which has raised expectations of a rate cut by the Fed,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan. Choudhary further added that markets expect a 25-bps rate cut and investors will watch out for the Fed Chair’s speech for further guidance.