Rupee gains 12 paise

Mumbai: The rupee appreciated 12 paise to close at 88.48 against the US dollar on Wednesday, supported by a positive trend in domestic equity markets and lower international crude prices.

However, a strengthening greenback against major currencies overseas capped the sharp gain in the domestic unit, according to forex traders.

At the interbank foreign exchange market, the rupee opened at 88.57 and hit an intra-day high of 88.41 against the US dollar. The local currency finally settled at 88.48, registering a 12-paise rise from its previous closing level.

On Tuesday, the rupee settled 1 paisa lower at 88.60 against the US dollar.

“We expect the rupee to trade with a slight positive bias on a rise in risk appetite in global markets and trade deal optimism. However, a strong dollar and fading rate cut expectations may cap the upside. Dollar demand from importers and FII outflows may pressurise the rupee at higher levels. USD-INR spot price is expected to trade in a range of Rs 88.25 to Rs 88.70,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.