Rupee rises 12 paise to close at 82.05 against U.S. dollar

Rupee gained 12 paise to close at 82.05 vs US dollar on July 17, boosted by domestic equity markets, foreign fund inflows and a soft dollar. US Fed's rate hike odds lowered due to cooling inflation, Brent crude prices declined. Domestic equity markets hit all-time high, FPI's invested over ₹30,600 cr in first fortnight of July. Forex reserves rose $1.229 bn to $596.28 bn. Rupee to trade with slight positive bias on risk appetite, weak dollar & foreign inflows.

The rupee gained 12 paise to close at 82.05 (provisional) against the U.S. dollar on July 17, as domestic equity benchmarks scaling all-time high levels and weakness in the American currency overseas boosted investor sentiments.

Besides, steady foreign fund inflows into domestic capital markets also supported the local unit, forex traders said.

At the interbank foreign exchange market, the local unit opened at 82.14 against the U.S. dollar and settled 12 paise higher at 82.05 (provisional) against the previous close.

During the day, the domestic unit witnessed an intra-day high of 82.03 and a low of 82.20.

On Friday, the rupee had closed at 82.17 against the dollar.

The rupee traded with a slight positive bias on positive domestic markets and a soft dollar. The domestic equity market touched fresh all-time highs, boosting the domestic currency.

The U.S. dollar is trading near its lowest levels in 15 months on rising odds of just one more rate hike by the U.S. Federal Reserve due to faster-than-expected cooling in inflation, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.