Rupee rises 12 paise to close at ₹79.57 against U.S. dollar

The rupee appreciated 12 paise to close at ₹79.57 (provisional) against the U.S. dollar on Friday, tracking positive domestic equities and foreign fund inflows.

At the interbank forex market, the local unit opened at ₹79.66 against the greenback. It witnessed an intra-day high of ₹79.47 and a low of ₹79.66 during the session.

It finally ended at ₹79.57, up 12 paise from its previous close of ₹79.69.

The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.98% to 108.63.

Brent crude futures, the global oil benchmark, advanced 1.72% to $90.68 per barrel.

The rupee appreciated on positive domestic equities and a weak U.S. dollar. The dollar declined by more than 1% on a sharp bounce amid an unprecedented 75 bps rate hike by ECB to 1.25%, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

“Global inflationary pressures may also put pressure on riskier assets. However, weakness in dollar and positive cues from global markets may support Rupee at lower levels,” Mr. Choudhary said, adding, “USD-INR spot price is expected to trade in a range of Rs 79 to Rs 80.30 in the next couple of sessions.”

On the domestic equity market front, the BSE Sensex ended 104.92 points or 0.18% higher at 59,793.14, while the broader NSE Nifty gained 34.60 points or 0.19% to 17,833.35.

FII inflows also supported the rupee. Foreign institutional investors (FIIs) were net buyers in the capital markets, as they purchased shares worth ₹2,913.09 crore on Thursday, according to provisional data.