Rupee opens 16 paise up at 85.06 as dollar continues to ease

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The rupee opened 16 paise up on May 26, extending the previous session’s gains against the dollar which continued to ease.

The local currency opened at against the US dollar after the previous close of 85.22.

The dollar index, which measures the greenback's strength against a basket of six major currencies, was below 100 for the third consecutive day.

The dollar has struggled ever since Moody's downgraded the US credit rating citing fiscal concerns.

The dollar index was at 98.812 in the morning. It ended the previous session at 99.112.

"Environment is turning favourable for Asian currencies, including the Indian rupee, which is benefiting from both capital inflows and dollar weakness," said Amit Pabari, managing director at CR Forex Advisors.

On May 23, the rupee registered its biggest single day gain in more than two years, appreciating around 79 paise to close at 85.21 against the dollar.

According to the Bloomberg data, the local currency's biggest gain was seen after November 11, 2022, when it appreciated around 99 paise in a single day.

On May 23, the rupee ended at 85.21 against the previous close of 86.