Rupee rises 8 paise against US dollar on forex inflows

MUMBAI: The rupee gained 8 paise to close at a fresh fiveweek high of 70.69 against the US dollar on Tuesday following foreign fund inflows and gains in Asian peers after Chinese central bank cut interest rates.

Forex inflows through Bajaj Finance share sale to qualified institutional investors helped the rupee hold strong against a strengthened dollar and rising crude oil prices, analysts said.

The rupee opened lower at 70.80 per US dollar compared to the previous close of 70.77 at the interbank foreign exchange market.

Later, it recovered some lost ground and moved in a range of 70.65 and 70.81 in afternoon trade before concluding at 70.69, showing a rise of 8 paise.

"Indian rupee has gained along with the Asian peers, as Chinese yuan appreciates after PBOC'S cut short-term lending rate ... approximate in flow of USD 1 billion through Bajaj Finance QIP has helped to rupee to hold strong against the dollar in today's session. USD/INR pair has got strong resistance at 71.10, while support is seen at 70.35," saidVK Sharma, Head PCG and Capital Markets Strategy, HDFC Securities. On a net basis, foreign portfolio investors (FPIS) bought shares worth Rs 473.17 crore on Tuesday, provisional exchange data showed.

The BSE Sensex settled 53.73 points, or 0.13 per cent, lower at 40,248.23. The broader NSE Nifty too slipped 24.10 points, or 0.20 per cent, to close at 11,917.20.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07 per cent to 97.57.

Brent crude futures, the global oil benchmark, surged by 1.17 per cent higher at USD 62.86 per barrel.