Rupee rises 17 paise to 85.59 against dollar

Mumbai: Rupee appreciated 17 paise to close at 85.59 against the US dollar on Tuesday, supported by weakness of the American currency in the overseas market and a positive tone in the domestic equities amid rise in risk appetite.

Forex traders said the US dollar is trading at lowest levels since February 2022 as President Donald Trump’s growing influence on Federal Reserve policy revived fears over the central bank’s independence.

Moreover, Brent crude prices remained subdued, offering a buffer to India’s import bill and helping cool inflation.

At the interbank foreign exchange, the domestic unit opened at 85.66 against the greenback. During the day, it witnessed an intraday high of 85.34.

The domestic unit settled for the day at 85.59, registering a rise of 17 paise over its previous close.

On Monday, the rupee settled 26 paise down at 85.76 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.46 per cent to 96.43.

Foreign institutional investors (FIIs) offloaded equities worth Rs 1,970.14 crore on a net basis on Tuesday, according to

exchange data.