Rupee rises 24 paise to 81.49 against U.S. dollar

The previous day, the rupee recovered from record lows to settle 20 paise higher at 81.73 against the dollar

The rupee appreciated 24 paise to 81.49 against the U.S. dollar in early trade on Friday ahead of the RBI monetary policy decision.

Forex traders said the rupee gained as the dollar retreated from its elevated levels. However, the local unit is likely to remain volatile amid the announcement of the Reserve Bank of India (RBI) monetary policy decision.

At the interbank foreign exchange, the domestic unit opened at 81.60 against the dollar, then touched 81.49, registering a gain of 24 paise over its previous close.

On Thursday, the rupee recovered from record lows to settle 20 paise higher at 81.73 against the dollar.

The RBI will announce its policy rate decision at 1000 hrs on Friday with the market factoring in a 50-basis points rate hike, and a 75-basis points hike would be a surprise as other central banks have done recently, said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10% to 112.14.

Brent crude futures, the global oil benchmark, fell 0.19% to $88.32 per barrel.