Rupee rises six paise to settle at 82.95 against U.S. dollar

Forex traders said, sustained outflow of foreign funds capped a sharp gain in the domestic currency.

At the interbank foreign exchange market, the local unit opened at 83.02 and touched the intraday high of 82.91 against the greenback. | Photo Credit: The Hindu

The Rupee appreciated six paise to settle at 82.95 (provisional) against the U.S. dollar on February 20, amid robust equity market sentiment and a weak American currency. Forex traders said, sustained outflow of foreign funds capped a sharp gain in the domestic currency.

At the interbank foreign exchange market, the local unit opened at 83.02 and touched the intraday high of 82.91 against the greenback.

The local unit finally settled at 82.95 (provisional) against the dollar, registering a gain of six paise from its previous close. On February 16, the Rupee settled four paise higher at 83.01 against the U.S. dollar.

The currency market was closed on February 19 on account of Chatrapati Shivaji Maharaj Jayanti. Jateen Trivedi, VP Research Analyst, LKP Securities, said the rupee strengthened as the dollar index weakened.

"Additionally, a minor correction in crude prices after a strong rally provided support to the Rupee. The financial sector's uptrend, evidenced by a 1.25% gain in the Bank Nifty index, attracted fund inflows, further bolstering the Rupee. Rupee's long consolidation persists within the range of 82.80-83.15," Mr. Trivedi said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was 0.10% lower at 104.07. Brent crude futures, the global oil benchmark, declined 0.59% to $83.07 per barrel.

On the domestic equity market front, Sensex advanced 349.24 points or 0.48% to settle at 73,057.40 points. The Nifty climbed 74.70 points or 0.34% to 22,196.95 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹754.59 crore, according to exchange data.