Mumbai: The rupee appreciated 15 paise to close at 85.40 against the US dollar on Friday, tracking a decline in the American currency in the overseas market and a weak tone in crude oil prices.
Forex traders said Asian currencies, including the rupee, gained ground on renewed hopes of trade deals with the US.
US President Donald Trump announced a trade agreement with Vietnam, and that injected a dose of optimism that perhaps more such agreements could be in the pipeline before the crucial July 9 deadline, according to forex traders.
At the interbank foreign exchange, the domestic unit opened at 85.44 against the American currency and touched an intra-day high of 85.30 and a low of 85.50 during the session.
The local unit finally settled at 85.40, higher by 15 paise than its previous closing price.
On Thursday, the rupee pared initial losses and edged up 7 paise to close at 85.55 against the dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.24 per cent
to 96.94.