The rupee rose 7 paise on Thursday, settling at 87.86 (provisional) against the US dollar amid optimism about the US-India trade deal and higher risk sentiment showcased by investors.
At the interbank foreign exchange, the rupee opened at 87.80 and touched an intraday low of 87.96 before settling at 87.86 (provisional).
On Monday, it had settled nine paise higher at 87.93 against the greenback.
Forex traders said the domestic unit closed on a positive note as there is a growing buzz that India and the US are ironing out previous differences on the proposed trade deal and finally inching closer to finalising it.
Prime Minister Narendra Modi and US President Donald Trump are said to have discussed trade issues during a phone conversation amid efforts by the two sides to repair strained bilateral ties after Washington slapped a whopping 50 per cent tariff on Indian goods.
In his remarks following the call on Tuesday, in which Trump wished the Prime Minister on the occasion of Diwali, the US President described the India-US relationship as “great” and said, without elaborating, that the two sides are working on some “great deals”.
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Trump also reiterated his claim that India has agreed to “stop” buying oil from Russia and would bring them down to “almost nothing” by the end of the year.
Foreign exchange markets were closed on Tuesday and Wednesday due to Diwali and Diwali Balipratipada, respectively.
In the coming weeks, forex traders expect investors to watch global cues, US economic data and RBI monetary signals for further directions.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.14 per cent higher at 99.04.
Brent crude, the global oil benchmark, was trading higher by 5.32 per cent at USD 65.92 per barrel in futures trade.
On the domestic equity market front, Sensex climbed 130.06 points to settle at 84,556.40, while the Nifty rose 22.80 points to 25,891.40.
Foreign Institutional Investors purchased equities worth ₹96.72 crore on Tuesday, according to exchange data.
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