Rupee rises 15 paise to close at 85.40 against US dollar
Forex traders said Asian currencies, including the rupee, gained ground on renewed hopes of trade deals with the US.
Mumbai, Jul 4 (PTI) The rupee appreciated 15 paise to close at 85.40 against the US dollar on Friday, tracking a decline in the American currency in the overseas market and a weak tone in crude oil prices.
At the interbank foreign exchange, the domestic unit opened at 85.44 against the American currency and touched an intra-day high of 85.30 and a low of 85.50 during the session.
The local unit finally settled at 85.40, up 15 paise from its previous closing price.
On Thursday, the rupee pared initial losses and edged up 7 paise to close at 85.55 against the dollar.
'We expect the rupee to gain on falling US dollar and weak tone in crude oil. However, uncertainty over trade tariffs may cap sharp gains,' Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.24 per cent to 96.94.
Brent crude, the global oil benchmark, fell by 1.18 per cent to USD 67.99 per barrel in futures trade.
According to Choudhary, USDINR spot price is expected to trade in a range of 85.10 to 85.70, Choudhary said.
'If the India-US trade treaty happens, rupee may see some more upside while the RBI may not be very comfortable for a fast appreciation of the rupee. 85.50 will act as a resistance for the dollar while 85.00 a support,' Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
The range for Monday is expected between 85 to 85.70, he said.
Meanwhile, in the domestic equity market, the Sensex advanced 193.42 points, or 0.23 per cent, to close at 83,432.89, while Nifty rose 55.70 points, or 0.22 per cent, to 25,461.00.
Foreign institutional investors (FIIs) offloaded equities worth Rs 760.11 crore on a net basis on Friday, according to exchange data.
On the domestic macroeconomic front, the Indian services sector growth touched a ten-month high in June aided by robust expansion in international sales and job creation, amid positive demand trends and ongoing improvement in sales, a monthly survey said on Thursday.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.8 in May to 60.4 in June, driven by sharp upturn in new business orders. PTI DRR TRB TRB
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
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