Mumbai, Aug 20: The rupee pared initial losses and settled on a higher note at 87.07 against the US dollar, up by 6 paise on the back of a rise in risk appetite in global markets.
Forex traders said easing tensions over trade tariffs and hopes of peace between Russia and Ukraine enthused investors. Moreover, the proposed GST reforms and a recent credit rating upgrade by a foreign agency have bolstered confidence in the Indian economy.
The rupee declined in the first half of the day on a positive US dollar and a recovery in crude oil prices. However, the domestic currency recovered losses on gains in domestic stock markets and possible foreign fund inflows, traders added.
The local unit opened lower at 87.16 but later recovered losses to hit a high of 86.98 against the greenback, as GST rationalisation and easing worries over additional tariffs by the US supported investor sentiment.
At the interbank foreign exchange market, the rupee settled at 87.07, registering a gain of 6 paise over its previous close. On Tuesday, the rupee appreciated 26 paise to close at 87.13 against the US dollar.
“We expect the rupee to trade with a positive bias on rise in risk appetite in the global markets amid easing tensions over trade tariffs and hopes of peace between Russia and Ukraine,” said Anuj Chaudhary, Research Analyst, Commodities and Currencies, Mirae Asset Sharekhan. (PTI)
