Rupee Gains As Dollar Weakens, Trade Talk Uncertainties Loom

At the interbank foreign exchange, the rupee opened at 85.97 against the US dollar and traded in the range of 85.75-85.97 before settling at 85.82 (provisional), up 10 paise from its previous close.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.11 per cent to 97.97.

Source : Freepik

The rupee appreciated 10 paise to close at 85.82 (provisional) against the US dollar tracking the weakness of the greenback in the overseas market and a decline in global crude oil prices. However, foreign fund outflows, along with uncertainties on the outcome of the ongoing India-US trade talks, capped sharper gains in the local unit, according to forex traders.

An Indian commerce ministry team is in Washington for another round of talks on the proposed bilateral trade agreement (BTA). The four-day talks, which started on Monday, will conclude on Thursday.

At the interbank foreign exchange, the rupee opened at 85.97 against the US dollar and traded in the range of 85.75-85.97 before settling at 85.82 (provisional), up 10 paise from its previous close.

The rupee depreciated 12 paise to close at 85.92 against the US dollar on Monday. The Reserve Bank of India has been guarding (rupee) at the 86.00 level and on Tuesday also ensured that rupee opens a tad higher than 86. For tomorrow (Wednesday) we expect rupee to be in the range of 85.50-86.10 with expectations of more flows, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. Brent crude, the global oil benchmark, was down 0.43 per cent to USD 68.91 per barrel in futures trade.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.11 per cent to 97.97. On the domestic equity market front, the Sensex climbed 317.45 points to settle at 82,570.91, while the Nifty gained 113.50 points to close at 25,195.80.

India's exports remained unchanged at USD 35.14 billion in June, while the trade deficit stood at USD 18.78 billion during the month, the latest government data showed on Tuesday. Foreign institutional investors (FIIs) sold equities worth Rs 1,614.32 crore on a net basis on Monday, according to exchange data. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)