Rupee touches three-week high of 86.91 against the US dollar

Rupee touches three-week high of 86.91 against the US dollar

Indian rupee opened 9 paise up on March 17 at 86.9112 against the US dollar.

The local currency was trading at 86.8188 against the US dollar, as compared to 87.0075 against the greenback in previous trading session, its highest level since February 24.

The dollar index, which measures American currency's value against six major global peers, fell to 103.730 in the early trade, as against 103.718 levels in the previous trading sessions.

“The dollar index was on backfoot at 103.70 with US yields stable at 4.3050% as it hovered near the five-month low against its major peers pressured by Trump's trade policies and a run of soft economic data,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

Amit Pabari, managing director at CR Forex Adviors said that with dovish Fed expectations keeping the USD under pressure, the rupee could extend its gains in the near term. However, global risk sentiment and oil price movements will play a crucial role in determining the next leg of rupee’s trajectory.

“Market participants will also keep a close watch on the RBI’s stance, as potential intervention could temper the rupee’s strength,” Pabari added.