Rupee rises 5 paise to close at 86.55 against US dollar

The rupee appreciated 5 paise to adjacent astatine 86.55 (provisional) against the US dollar connected Monday, arsenic an overnight diminution successful crude lipid prices and the US dollar scale supported capitalist sentiments.

Besides, a affirmative inclination successful home equities besides helped the section currency, Forex traders said the rupee is apt to commercialized wrong a volatile scope of 86.20-86.80 up of cardinal events successful the planetary and home economical landscape.

At the interbank overseas exchange, the rupee opened connected a beardown enactment astatine 86.48 against the greenback. During the day, the section portion touched an intraday precocious of 86.46 and a debased of 86.57.

It yet closed astatine 86.55 (provisional), a emergence of 5 paise against the US dollar. In the erstwhile league connected Friday, the rupee settled astatine 86.60.

According to Anuj Choudhary – Research Analyst astatine Mirae Asset Sharekhan, the rupee strengthened against the greenback connected the anemic code successful the US Dollar scale and affirmative home markets. Overnight diminution successful crude lipid prices besides supported the rupee.

"We expect the rupee to stay anemic connected underlying spot successful the US Dollar and importer request for Dollars. However, immoderate further correction successful crude lipid prices and extended gains successful the home markets whitethorn enactment the rupee astatine little levels," Choudhary said.

The US markets volition stay closed owed to the Martin Luther King Junior Day holiday.

USD/INR spot terms is expected to commercialized successful a scope of 86.40 to 86.75.

Meanwhile, the dollar index, which gauges the greenback's spot against a handbasket of six currencies, was trading down 0.17 per cent to 109.16.

Brent crude, the planetary lipid benchmark, fell 0.50 per cent to USD 80.39 per tube successful futures trade.

In the home equity market, the 30-share BSE Sensex roseate 454.11 points, oregon 0.59 per cent, to settee astatine 77,073.44 points, portion the Nifty roseate 141.55 points, oregon 0.61 per cent, to 23,344.75 points.

Foreign Institutional Investors (FIIs) remained nett sellers successful the superior markets connected Friday, arsenic they offloaded shares worthy Rs 3,318.06 crore, according to speech data.

On the home macroeconomic front, India's forex reserves dropped by USD 8.714 cardinal to USD 625.871 cardinal successful the week ended January 10, the RBI said connected Friday.

Earlier, the wide kitty dropped by USD 5.693 cardinal to USD 634.585 cardinal successful the week ended January 3, the Reserve Bank of India said.