Rupee rises 14 paise to close at 82.58 against US dollar

Mumbai, May 26 (PTI) The rupee appreciated by 14 paise to 82.58 (provisional) against the US dollar on Friday, supported by foreign capital inflows and a positive trend in domestic equities.

However, the elevated level of the US dollar against major crosses overseas restricted the upward movement in the domestic unit, forex traders said.

The dollar index is trading above the 104-level on safe-haven appeal, as US President Joe Biden and Republican House Speaker Kevin McCarthy are reportedly close to reaching an agreement on the US debt ceiling.

At the interbank foreign exchange market, the local unit opened at 82.73 against the US dollar and settled at 82.58 (provisional), up 14 paise over its previous close.

During the day, the domestic unit witnessed an intra-day high of 82.56 and a low of 82.73 in the day trade.

On Thursday, the rupee closed at 82.72 against the US currency.

“The Indian rupee erases weekly losses amid a rally in the domestic equities followed by foreign fund inflows and recovery in the Asian currencies,” said Dilip Parmar, Research Analyst, HDFC Securities.

Investors are keeping an eye on a potential debt-ceiling deal, which could happen over the weekend ahead of the US Holiday on Monday.

“The rupee has been propped up by attractive carry trade after a recent pause from the RBI. Spot USD/INR is expected to find support around 82.50 amid month-end inflows from MSCI rebalancing while 82.90 remains the biggest hurdle to cross,” Parmar added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.19 per cent to 104.04.

Global oil benchmark Brent crude futures advanced 0.56 per cent to USD 76.69 per barrel.

On the domestic equity market front, the 30-share BSE Sensex advanced 629.07 points or 1.02 per cent to end at 62,501.69 points, and the broader NSE Nifty rose 178.20 points or 0.97 per cent to 18,499.35 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Thursday as they purchased shares worth Rs 589.10 crore, according to exchange data.