Rupee rises nine paise to close at 82.96 against U.S. dollar

The Rupee appreciated nine paise to close at 82.96 (provisional) against the U.S. dollar on February 7, tracking a correction in the greenback against major currencies and fresh foreign capital inflows.

The Rupee appreciated nine paise to close at 82.96 (provisional) against the U.S. dollar on February 7, tracking a correction in the greenback against major currencies and fresh foreign capital inflows.

“However, a rise in crude oil prices and muted domestic markets capped the sharp gains in the domestic unit,” forex traders said. At the interbank foreign exchange market, the local unit opened at 83.03 against the greenback. The unit hit an intraday high of 82.94 and a low of 83.09.

The local unit finally settled at 82.96 (provisional) against the dollar, higher by nine paise from its previous close of 83.05.

"We expect the Rupee to trade with a slight positive bias on a rise in global risk sentiments and a soft U.S. Dollar. However, the surge in crude oil prices and hawkish comments from various major Central bank officials may cap the sharp upside," said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

Traders may take cues from trade balance data from the U.S. Investors may remain cautious ahead of the Reserve Bank of India’s (RBI) monetary policy decision on February 8.

"RBI is expected to keep its monetary policy unchanged. USD/INR spot price is expected to trade in a range of ₹82.60 to ₹83.30," Mr. Choudhary said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17% lower at 104.04.