Rupee rises 19 paise to close at 82.94 against U.S. dollar

The rupee finally settled 19 paise higher at 82.94 (provisional) against the previous close.

The rupee appreciated 19 paise to 82.94 (provisional) against the U.S. dollar on Friday, as the inclusion of India in the JPMorgan bond index boosted investor sentiment.

Forex traders said the decision of JPMorgan Chase & Co to include Indian government bonds in its benchmark emerging market index is expected to have far-reaching implications for India's debt market and global investors.

At the interbank foreign exchange market, the local unit opened at 82.75 against the U.S. dollar and touched the lowest level of 82.97 in the day trade.

The rupee finally settled 19 paise higher at 82.94 (provisional) against the previous close.

On Thursday, the rupee settled at 83.13 against the U.S. dollar.

India's inclusion in a major global bond index will open doors to increased foreign investment in the nation's debt market, traders said.

Analysts expect India's inclusion in a major global bond index will lead to a direct inflow of $20-25 billion in the debt over the 18-21 months.