Rupee rises 6 paise to close at 79.86 against US dollar

The rupee appreciated 6 paise to 79.86 (preliminary) against the US dollar on Friday, aided by foreign capital inflows and a positive trend in domestic equities. However, higher crude oil prices in international markets capped the rupee’s gains, foreign exchange traders said. In the interbank foreign exchange market, the local unit opened at 79.87 against the dollar. Intraday, the pair posted a daily high of 79.81 and a low of 79.94 against the dollar. It ended at $79.86, up 6 paise from its previous close of 79.92. The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.13% at 108.33. Brent crude futures, the global oil benchmark, rose 1.42% to $100.75 a barrel.The rupee appreciated following positive domestic equity markets and FII inflows.However, the strong US Dollar and higher crude oil prices capped sharp gains, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. “We expect the rupee to trade on a negative note on a strong Dollar and rising crude oil prices. Month-end Dollar demand from importers may also weigh on the rupee. However, positive global equities and FII inflows may support Rupee at lower levels,” he added.

Remittances from NRI can also support Rs. Traders are likely to remain cautious ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole seminar, Choudhary said, adding that over the next few sessions, USD/India The spot price of rupee is likely to trade in the range of 79.20 to 80.50 rupees.

On the domestic stock market, the BSE Sensex closed up 59.15 points, or 0.10%, at 58,833.87, while the broader NSE Nifty gained 36.45 points, or 0.21%, to 17,558.90. Foreign institutional investors (FII) remained net buyers of capital markets as they bought shares worth Rs 369.06 crore on Thursday, according to preliminary data

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