Rupee closes higher against US dollar

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The Indian rupee strengthened against the dollar on October 4, tracking gains in global equities and currency markets.

At closing, the rupee settled at 81.52 against the dollar, up 0.44 percent from its previous close of 81.88. The currency opened at 81.67 and touched a high and a low of 81.36 and 81.68 respectively.

But the trend is unlikely to continue. Analysts expect the rupee to depreciate further this month and likely surpass the 82.28 level amid continued strength in the dollar index.

The rupee has been on a downward spiral amid FII outflows following the hawkish stance of the US Federal Reserve and expectations of further aggressive rate hikes.

Globally, shares were trading higher buoyed by improved risk sentiment as the US treasury yield tumbled overnight.

India's benchmark Sensex and Nifty rose more than 2.25 percent.

In the US, Dow Jones was up 2.66 percent, S&P500 2.6 percent and Nasdaq 2.3 percent. The UK’s FTSE100 was up 1.8 percent, the French CAC40 3 percent and the German DAX advanced 2.7 percent. In Asia, Japan’s Nikkei closed 3 percent higher

Among Asian currencies, the South Korean won was up 1.1 percent, Thai Baht 0.67 percent, Philippines peso 0.54 percent, China Offshore 0.51 percent, Taiwan dollar 0.5 percent, Indonesian rupiah 0.36 percent, China Renminbi 0.13 percent.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 111.25, down 0.44 percent from its previous close of 111.75.