The gains in the USD/INR pair follow the rupee’s streak of record lows in recent weeks, likely due to intervention from the Reserve Bank of India, they added.At the interbank forex market, the rupee opened at 90.19 against the US dollar but subsequently recovered some lost ground to touch an intraday high of 89.25, a gain of 95 paise over the previous close.
At the end of the trading session on Friday, the rupee was trading at 89.66 (provisional), up 54 paise from the previous close.
On Thursday, the rupee rose by 18 paise to close at 90.20 against the US dollar.
The rupee fell to a new low, crossing the 91 per dollar mark for the first time on Tuesday. “The Indian rupee rose for the third straight session on Friday on the back of corporate dollar inflows and falling crude oil prices. Strength in domestic markets also favored the rupee,” said Anuj Choudhary, research analyst at Mirae Asset ShareKhan.
Choudhary further added that the rupee is likely to trade negatively due to selling pressure from foreign investors and nervousness due to the delay in the India-US trade deal.
“However, overall weakness in the US dollar index and crude oil prices may support the rupee at lower levels. The USD-INR spot price is expected to trade within a range of 89.90 to 90.50,” he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.24 percent higher at 98.66.
Brent crude, the global oil benchmark, was 0.37 percent lower at USD 59.60 per barrel in futures trading.
In the domestic equity market, the Sensex rose 447.55 points to 84,929.36, while the Nifty rose 150.85 points to 25,966.40.
According to stock market data, foreign institutional investors bought shares worth Rs 595.78 crore on Thursday.
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