Rupee rises 16 paise to 85.76 against US dollar

Mumbai: The rupee appreciated 16 paise to close at 85.76 against the US dollar, tracking a weak greenback in the overseas market and a decline in global crude oil prices.

However, foreign fund outflows, along with uncertainties on the outcome of the ongoing India-US trade talks, capped sharper gains in the local unit, according to forex traders.

An Indian commerce ministry team is in Washington for another round of talks on the proposed bilateral trade agreement (BTA). The four-day talks, which started on Monday, will conclude on Thursday.

At the interbank foreign exchange, the rupee opened at 85.97 against the US dollar and traded in the range of 85.75-85.97 before settling at 85.76, up 16 paise from its previous close.

The rupee depreciated 12 paise to close at 85.92 against the US dollar on Monday.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.11 per cent to 97.97.

Foreign institutional investors (FIIs) sold equities worth Rs 1,614.32 crore on a net basis on Monday, according to exchange

data.