Currency Market News: Rupee gains 6 paise to close at 85.51 vs US dollar

Rupee appreciated by 6 paise to settle at 85.51 (provisional) against the US dollar on Wednesday, buoyed by robust foreign fund inflows and a weakening American currency against major global peers.

Despite the positive momentum, traders noted that investors largely remained on the sidelines ahead of the Consumer Price Index (CPI) data release scheduled for Thursday, which limited further gains.

At the interbank foreign exchange market, the rupee opened at 85.53 and traded between an intra-day high of 85.42 and a low of 85.56. It ultimately ended the session at 85.51, marking a gain of 6 paise compared to its previous close of 85.57.

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"Rupee traded positive with gains of 0.10 rupees at 85.44, supported by sustained FII and DII buying activity, even as the dollar index remained flat. While rising crude prices capped further appreciation, steady fund flows kept the rupee resilient. The currency is expected to move within a range of 85.25 to 85.85," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.05 per cent to 99.04.

"Rupee traded positive...supported by sustained FII and DII buying activity, even as the dollar index remained flat. While rising crude prices capped further appreciation, steady fund flows kept the rupee resilient. The currency is expected to move in a range of 85.25 to 85.85," Trivedi added.

Also Read:Currency Market News: Rupee gains 4 paise to close at 85.62 vs dollar amid strong FII inflows  

Meanwhile, Brent crude futures — the global oil benchmark — dipped 0.09 per cent to USD 66.81 per barrel.

Stock market summary

On the domestic equities front, the BSE Sensex rose 123.42 points to close at 82,515.14, while the NSE Nifty advanced 37.15 points to finish at 25,141.40.

As per exchange data, foreign institutional investors (FIIs) were net buyers in the capital market on Tuesday, purchasing shares worth ₹2,301.87 crore.