Rupee rises 17 paise to close at 90.61 against US dollar on FII inflows

Mumbai (PTI): The rupee appreciated 17 paise to settle for the day at 90.61 (provisional) against the US dollar on Thursday, as foreign fund investments lifted investor sentiments.

Forex traders said foreign fund inflows, while not massive, provided a psychological anchor. Moreover, the RBI has been quietly ensuring that liquidity remains abundant in the banking system, they said.

At the interbank foreign exchange market, the rupee opened at 90.55 against the US dollar, and touched an intraday high of 90.40 and a low of 90.65 during the day.

At the end of the trading session on Thursday, the domestic unit was quoted at 90.61 (provisional), higher by 17 paise over its previous close.

On Wednesday, the rupee depreciated 22 paise to close at 90.78 against the US dollar.

Forex traders said that while markets initially welcomed the India-US trade deal, fresh concerns have emerged after the White House released its fact sheet.

The fact sheet highlights key terms of the agreement, including that India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products.

On Wednesday, Commerce Secretary Rajesh Agrawal said India has always negotiated with a "clear mindset" on sectors that are "very" sensitive for the country in trade pacts, and has protected all those key segments under the interim trade agreement with the US.

He also said that both teams are working to convert the joint statement into a legal agreement, which is expected to be finalised and signed before the end of March.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent lower at 96.79.

Brent crude, the global oil benchmark, was trading 0.29 per cent lower at USD 69.20 per barrel in futures trade.

On the domestic equity market front, Sensex tumbled 558.72 points to settle at 83,674.92, while the Nifty dropped 146.65 points to 25,807.20.

On Wednesday, foreign institutional investors purchased equities worth Rs 943.81 crore, according to exchange data.