Rupee gains 17 paise to close at 82.65 against U.S. dollar

File image.
| Photo Credit: Reuters

The rupee appreciated 17 paise to close at 82.65 (provisional) against the U.S. dollar on December 26, tracking positive domestic equities and the weakening of the American currency in the overseas market.

At the interbank foreign exchange market, the local unit opened at 82.79 and touched an intra-day high of 82.63 and a low of 82.83 against the greenback.

It finally settled at 82.65, registering a rise of 17 paise over its previous close of 82.82.

According to Anuj Choudhary—Research Analyst at Sharekhan by BNP Paribas, the rupee appreciated on Monday on a surge in domestic equities and a soft US Dollar. Domestic indices gained by around 1.5%. The U.S. Dollar softened amid improved global risk sentiments and softer inflation in the U.S.

“We expect the rupee to trade with a positive bias on weakness in the Dollar and positive domestic markets. The decline in safe-haven appeal on the rise in risk appetite in global markets may also put pressure on the dollar.

“However, the surge in crude oil price caps the sharp upside in the rupee. USD/INR spot price is expected to trade in a range of Rs 82 to Rs 83.30,” Choudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.11”% to 104.31.

Global oil benchmark Brent crude futures rose 3.63% to $83.92 per barrel.

On the domestic equity market front, the 30-share BSE Sensex advanced 721.13 points or 1.20%t to end at 60,566.42, while the broader NSE Nifty rose 207.80 points or 1.17% to 18,014.60.

Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Friday as they offloaded shares worth ₹706.84 crore, according to exchange data.