Rupee falls 2 paise to close at 86.07 against U.S. dollar
The rupee gave up its gains and settled for the day lower by 2 paise at 86.07 (provisional) against the US dollar on Wednesday, on recovery in global crude oil prices and the U.S. Dollar index.
A strong show in the domestic equity markets prevented steep losses in the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 86.00 against the U.S. dollar and traded in the range of 85.79-86.14 before settling at 86.07 (provisional), down 2 paise from its previous close.
Rupee opened in the positive on a surge in domestic markets and improved global risk sentiments. Ceasefire between Israel and Iran has led to rise in risk appetite.
The local unit had logged its steepest single-day gain in nearly five years on Tuesday to end 73 paise higher at 86.05 against the greenback.
"The rupee made a high of 85.79 before oil companies stepped in and took it lower to 86.13 with the market still sceptical of the Iran-Israel ceasefire," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
"We await the current account data from the RBI to gauge how it performed during 2024-25, while the IIP data is also due to be announced today (Wednesday)," he said, adding that the rupee is expected in the range of 85.75-86.50 on Thursday.
Brent crude, the global oil benchmark, rose 1.09 per cent to USD 67.87 per barrel in futures trade after US President Donald Trump claimed to have brokered a ceasefire between Iran and Israel.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading up 0.24 per cent at 98.09.
Meanwhile, in the domestic equity market, Sensex jumped 700.40 points to settle at 82,755.51, while Nifty surged 200.40 points to 25,244.75.
Foreign institutional investors (FIIs) offloaded equities worth Rs 5,266.01 crore on a net basis on Tuesday, according to exchange data.
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