Rupee gains 20 paise against US dollar as RBI support kicks in, greenback weakens

Rupee gains 20 paise against US dollar

NEW DELHI: Rupee began Friday on a strong note, gaining 20 paise from its previous close to 94.79 against the US dollar. The rise came as American currency weakened and the impact of the Reserve Bank of India's structural forex interventions supported the unit.The gains, however, remained limited amid elevated crude oil prices and a negative beginning at Dalal Street.In the interbank foreign exchange market, the rupee began the session at 94.75 before moving to 94.79. The gain follows Thursday's 18-paise appreciation, which took the currency to a closing level of 94.99 against the dollar.Anuj Choudhary, research analyst at Mirae Asset Sharekhan, told PTI, "Decline in dollar index and softening of US treasury yields also supported the rupee.

However, a surge in crude oil prices capped sharp gains. On the data front, US PPI (Producer Price Index) was hotter than expected while retail sales topped forecast. Weekly unemployment claims were in line with expectations."The dollar index, which tracks the US currency against a basket of six currencies, fell 0.54% to 102. US Treasury yields also eased, providing support to rupee.Meanwhile in the commodity market Brent crude futures were trading 0.54% lower at $105.35 per barrel.

Domestic equities remained under pressure in early trade.BSE Sensex opened 113 points down at 74,187, while NSE Nifty50 slipped 27.20 points to 22,967.15. However, both indices turned green later in the session, with Sensex gaining 400 points and Nifty50 topping 23,100.Adding to the market backdrop, Foreign Institutional Investors (FIIs) were net sellers of domestic equities worth Rs 5,285.37 crore on Thursday, exchange data showed.