Rupee Rises 17 Paise, Closes At ₹89.88
The rupee gained 17 paise against the US dollar on Tuesday and ended the day at ₹89.88. The currency moved up from its previous close as the dollar weakened in global markets. Dealers said better liquidity and active dollar selling by some foreign banks supported the rise.
Global cues and oil prices helped
Market analysts pointed out that softer crude oil prices and expectations of future rate cuts by the US Federal Reserve reduced pressure on emerging market currencies. The rupee had recently been close to the ₹90 level, driven by foreign fund outflows and global uncertainty. The latest improvement has offered short-term relief to import-heavy sectors.
Intervention and exporter activity
Exporters were seen selling dollars, and possible central bank intervention also helped stabilise the exchange rate. Equity markets were weak, but currency traders said local factors were outweighed by global cues that favoured a stronger rupee on the day.
Outlook remains cautious
Experts believe the rupee may continue to face volatility. Changes in the dollar index, foreign investment trends and international oil prices will influence its movement in the coming days. Import-dependent companies may benefit if the level stays below ₹90.
