Rupee Rises to 85.51 Against US Dollar

Mumbai, Jun 11 (PTI) The rupee appreciated 6 paise to close at 85.51 (provisional) against the US dollar on Wednesday, supported by strong foreign fund inflows and a weak American currency against major rivals overseas.

However, investors stayed on the sidelines ahead of the CPI data release on Thursday and restricted the gains, traders said.

At the interbank foreign exchange, the domestic unit opened at 85.53 and reached an intra-day high of 85.42 and a low of 85.56. It finally settled at 85.51 (provisional), up 6 paise from its previous closing of 85.57.

"The rupee traded positive...supported by sustained FII and DII buying activity, even as the dollar index remained flat. While rising crude prices capped further appreciation, steady fund flows kept the rupee resilient. The currency is expected to move in a range of 85.25 to 85.85," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.

In the domestic equity market, the 30-share BSE Sensex rose 123.42 points to end at 82,515.14, while the Nifty rose 37.15 points to 25,141.40.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, dipped 0.05 per cent to 99.04.

"The rupee gained to 85.42 before retreating... in another lacklustre and lower volumes trading... Everybody is awaiting the details of the framework decided by the US-China delegations," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

Brent crude, the global oil benchmark, dipped 0.09 per cent to USD 66.81 per barrel in the futures trade.

Foreign institutional investors (FIIs) purchased equities worth Rs 2,301.87 crore on a net basis on Tuesday, according to exchange data.