Rupee rises 6 paise to close at 87.63 against US dollar

Mumbai, Aug 28 (PTI) The rupee rose by 6 paise to close at 87.63 (provisional) against the US dollar on Thursday aided by a weaker greenback and a decline in crude oil prices.

However, concerns over additional US tariffs on Indian products, which kicked in on Wednesday, and a decline in domestic equity markets capped gains in the local unit, according to forex traders.

The US government has imposed a total of 50 per cent tariffs on Indian exports to America, barring a few sectors.

At the interbank foreign exchange, the rupee opened at 87.56 against the greenback and traded in the range of 87.53-87.68 during the day. The local unit settled at 87.63 (provisional), registering a gain of 6 paise from its previous close.

The rupee depreciated 13 paise to close at 87.69 against the US dollar on Tuesday. Equity and forex markets remained closed on Wednesday on account of Ganesh Chaturthi.

Brent crude, the global oil benchmark, was trading 0.72 per cent lower at USD 67.56 per barrel in futures trade.

"Brent oil prices fell in Asian trading on Thursday after US data showed a lower-than-expected drop in crude inventories, while investors weighed the impact of additional US tariffs against India," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.16 per cent to 98.07.

"The dollar index fell as US President Donald Trump's unprecedented move to fire FED Governor Lisa Cook renewed concerns over the Central Bank's independence," Bhansali added.

On the domestic equity market front, the Sensex tumbled 705.97 points to settle at 80,080.57, while the Nifty was down 211.15 points to 24,500.90.

Foreign Institutional Investors offloaded equities worth Rs 6,516.49 crore on Tuesday, according to exchange data. PTI TRB MR