The rupee closed 5 paise higher at 81.92 (preliminary) against the US dollar today as positive dynamics in domestic equities and fresh inflows of foreign funds boosted investor sentiment.
In the interbank foreign exchange market, the local unit opened at 81.85 against the US currency and finally settled at 81.92 (provisional) against the greenback, up 5 paise from its previous close of 81.97.
The rupee touched a high of 81.62 and a low of 81.95 against the dollar during the trade.
The dollar index, which shows the strength of the US dollar against a basket of six currencies, rose 0.06 percent to 104.58.
Global Brent oil futures decreased by 0.77 percent and amounted to 81.17 dollars per barrel.
The Indian rupee hit a one-month high of 81.62 on the back of an extended rally in domestic markets and fresh foreign inflows. Positive Asian currencies also supported the local currency, said Anuj Choudhary, research analyst at Sharekhan at BNP Paribas.
“We expect the rupee to trade in a slightly positive direction due to rising risk appetite in global markets and a soft dollar. Crude oil and overall weak tones in FII inflows are also likely to support the rupee,” Choudhary said.
However, a slowdown in the global economy could dampen the recession. The dollar could witness some volatility this week ahead of Fed Chair Powell’s testimony and US labor market data later this week, Choudhary added.
In the domestic equity market, the 30-share BSE Sensex rose 415.49 points, or 0.69 percent, to end at 60,224.46, while the broader NSE Nifty rose 117.10 points, or 0.67 percent, to 17,711.45.
Foreign institutional investors (FIIs) were net buyers in the capital market on Friday as they bought shares worth Rs 246.24 crore, according to stock exchange data.
(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)
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