Rupee rises 12 paise to close at 79.57 against US dollar

MUMBAI: The rupee appreciated 12 paise to close at 79.57 (provisional) against the US dollar on Friday, tracking positive domestic equities and foreign fund inflows.

At the interbank forex market, the local unit opened at 79.66 against the greenback. It witnessed an intra-day high of 79.47 and a low of 79.66 during the session.

It finally ended at 79.57, up 12 paise from its previous close of 79.69.

The dollar index, which measures the greenback's strength against a basket of six currencies, fell 0.98 per cent to 108.63.

Brent crude futures, the global oil benchmark, advanced 1.72 per cent to USD 90.68 per barrel.

The rupee appreciated on positive domestic equities and a weak US dollar. The dollar declined by more than 1 per cent on a sharp bounce amid an unprecedented 75 bps rate hike by ECB to 1.25 per cent, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

"Global inflationary pressures may also put pressure on riskier assets. However, weakness in dollar and positive cues from global markets may support Rupee at lower levels," Choudhary said, adding, "USD-INR spot price is expected to trade in a range of Rs 79 to Rs 80.30 in the next couple of sessions."

On the domestic equity market front, the BSE Sensex ended 104.92 points or 0.18 per cent higher at 59,793.14, while the broader NSE Nifty gained 34.60 points or 0.19 per cent to 17,833.35.

FII inflows also supported the rupee. Foreign institutional investors (FIIs) were net buyers in the capital markets, as they purchased shares worth Rs 2,913.09 crore on Thursday, according to provisional data.