Rupee gains ground, opens 20 paise up against dollar at 85.48

The rupee has gained for the past four days as the dollar takes a tumble.

The rupee opened 20 paise up on April 17 on likely foreign fund flows supported by positive domestic data and a wobbling dollar.

The local currency opened at 85.48 against the dollar after ending the previous session at 85.68, appreciating for the fourth straight day.

The rupee’s rise is supported by positive domestic economic data and the global shift in sentiment following the US actions to slow down China’s growth, Amit Pabari, managing director at CR Forex Advisors said.

India is becoming a more attractive destination for foreign institutional investors, with money likely to move away from the US and China towards emerging markets.

The trade war between the world’s two biggest economies is showing no signs of abating, as they continue to fire tariff salvos, adding to fears about the health global commerce and economy.

The dollar index is trading below 100, which is also supporting the local currency.

The dollar index, which measures American currency's value against six major global peers, fell to 99.488 in the early trade. It has hovered around 99 in the past two sessions.

The rupee is expected to remain in the 85.45-85.75 range during the day, Abhishek Goenka, founder & CEO, India Forex Asset Management-IFA Global said.