Mumbai, Apr 16 (PTI) The rupee sustained its rally for the third straight session and settled with a gain of 16 paise at 85.64 against the US dollar on Wednesday, boosted by the renewed inflow of foreign funds and a weak American currency.
Positive domestic macroeconomic numbers amid the 90-day pause on US reciprocal tariffs triggered a buying rush in equities, strengthening the local currency, according to forex traders.
Also, lower crude prices in international markets supported the domestic unit, they said.
At the interbank foreign exchange, the domestic unit opened at 85.66 and moved between the intraday high of 85.50 and the low of 85.72 against the greenback. The unit ended the session at 85.64, registering a gain of 16 paise over its previous closing level.
The rupee had closed Tuesday’s session with a gain of 30 paise at 85.80 against the dollar. It had risen sharply by 58 paise in the preceding session on Friday.
The rupee traded higher on dollar weakness, while FII inflows into Indian markets have strengthened sentiment, “driven by relief on global trade tariffs and India’s relatively resilient positioning amidst ongoing global trade tensions”, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.
“The rupee has quietly appreciated over 1 per cent in the past week, reflecting both external tailwinds from a softening dollar and internal stability from improving capital flows. However, with global trade war concerns still looming, volatility cannot be ruled out,” he added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.57 per cent at 99.39, a level seen in March 2022.
Brent crude, the global oil benchmark, rose 0.88 per cent to USD 65.24 per barrel in futures trade.
Gold prices soared by Rs 1,650 to hit an all-time high of Rs 98,100 per 10 grams in the national capital on Wednesday amid a global rush for the safe-haven asset triggered by an escalated trade war between the US and China.
In the domestic equity market, the 30-share BSE Sensex climbed 309.40 points or 0.40 per cent to settle at 77,044.29, while the Nifty rose 108.65 points or 0.47 per cent to 23,437.20. Both the indices ended the preceding session over 2 per cent higher.
Foreign institutional investors (FIIs) bought equities worth Rs 3,936.42 crore on a net basis on Wednesday, according to exchange data.
