Mumbai: Rising for the second straight session, the rupee surged 12 paise to close at 87.96 against the US dollar on Thursday, buoyed by a softer American currency against major currencies and renewed risk-on sentiment among investors.
Forex traders said that likely intervention by the RBI and a firm trend in domestic equities further enthused investors.
At the interbank foreign exchange, the rupee opened below the 88-mark at 87.76 against the greenback, and touched an intraday high of 87.68 per dollar. The domestic unit finally settled at 87.96 against the greenback, registering a rise of 12 paise over its previous close.
In the near-term, spot USD/INR exhibits support at 87.60 and resistance at 88.70. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21 per cent lower at 98.58.