Mumbai, June 19: The rupee pared most of its initial gains and settled higher by 7 paise at 94.33 against the US dollar on Friday, as a firming dollar index and rising crude oil prices weighed on investor sentiments.
Forex traders said the rupee opened on a positive note, on optimism that trade negotiations between India and the US are set to gain momentum.
Indian Foreign Secretary Vikram Misri on Thursday said trade was a major subject of discussion between Prime Minister Narendra Modi and US President Donald Trump, with both leaders directing their negotiators to finalise the proposed trade pact at the earliest.
However, market sentiments weakened amid uncertainty over the US-Iran peace deal, traders said.
US Vice President JD Vance has put off his visit to Switzerland for talks with Iranian negotiators, with the White House citing logistical issues.
At the interbank foreign exchange, the rupee opened at 94.30 against the US dollar and traded in the range of 94.20-94.52. Eventually, it settled at 94.33, up 7 paise from its previous close.
On Thursday, the rupee settled 10 paise higher at 94.40 against the US dollar.
“The rupee closed a tad stronger at 94.32 after intra-day downside was till 94.52 levels. The range for Monday is expected between 94 and 95 while we await for further developments on the US-Iran front during the weekend,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Meanwhile, the American dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.76, lower by 0.08 per cent, on Friday. (PTI)
