Mumbai: The rupee snapped its two-day losing streak and closed 8 paise higher at 85.79 against the US dollar on Thursday, supported by positive domestic equities.
Forex traders said overnight softening of crude oil prices favoured the rupee. However, a strong US dollar index capped sharp gains.
Besides, market participants are now keenly awaiting the outcome of the RBI’s monetary policy meeting for further cues, they said.
At the interbank foreign exchange, the domestic unit witnessed a volatile trading session — it opened at 85.86 and moved between a high of 85.67 and a low of 85.96 against the greenback during the day.
The local unit pared all its initial gains and settled for the day on the positive territory, higher by 8 paise at 85.79 against the American currency.
On Wednesday, the rupee depreciated for the second consecutive session and settled for the day lower by 26 paise at 85.87 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.06 per cent at 98.85.