Rupee edges up to close at 81.78

The rupee rose 2 pounds to settle at 81.78 (tentative) against the US dollar in range-bound trade on Thursday, tracking the greenback’s weakness in overseas markets.

Forex dealers said large foreign money inflows and crude oil prices trading below $75 a barrel also supported local unity.

In the interbank foreign exchange market, the local unit opened higher at 81.68 against the greenback but later pared some gains to close at 81.78 (tentative), recording a gain of 2 cents from its previous close.

During the session, the rupee touched highs of 81.65 and 81.84 against the dollar. On Wednesday, the rupee closed at 81.80 against the greenback.

The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.04 percent to 101.30. The US dollar fell after the Federal Reserve hinted at a one-year pause to the interest rate hike cycle after the last 25 basis point rate hike.

Brent crude futures, the global benchmark, rose 0.98 percent to $73.04 a barrel.

Jatin Trivedi, VP Research Analyst at LKP Securities, said that the rupee opened the day strongly against the dollar but gave up its gains as it fell towards 81.80 during the day.

The dollar index was seen trading between 101.04-101.40, and foreign institutional investors (FII) were net buyers.

“The rupee range can be seen between 81.50-82.00 after the Fed hinted at a dovish stance that could help the rupee going forward,” Trivedi said, adding that lower crude prices could also set a positive tone for the rupee.

Foreign institutional investors (FIIs) were net buyers in the capital market on Wednesday buying shares worth Rs 1,338.00 crore, according to exchange data.