Mumbai: The rupee pared most of its initial gains and ended the day higher by 4 paise at 85.32 against the American currency on Wednesday, supported by gains in domestic equities and positive macroeconomic data.
Forex traders said the weakness of the American currency in the overseas market and rising appetite for riskier assets amid easing trade tariff tensions boosted investors’ sentiments.
At the interbank foreign exchange, the domestic unit opened on a positive note and moved between the intra-day high of 85.05 and the low of 85.52 against the greenback. The unit ended the session at 85.32, registering a gain of 4 paise over its previous closing level.
On Tuesday, the rupee reversed early gains to settle flat at 85.36 against the US dollar.
“Bolstered by a weaker US dollar index, cheaper imported commodities, and a prevailing risk-on mood in the markets, the Indian rupee saw gains against the US dollar on Wednesday,” said Dilip Parmar, Senior Research Analyst, HDFC Securities.