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The Indian rupee gained against the U.S. dollar for the third straight day on Friday.
The local currency opened at 81.11, appreciating 11 paise against Wednesday’s close of 81.22. It gained 14 paise to 81.08 during early trade.
“Early sell-offs in dollar-rupee were strong enough to see the 81 vicinity, which encouraged bargain hunting [in dollar-rupee],” said Anand James – Chief Market Strategist at Geojit Financial Services. “However, the dollar-rupee will require a push beyond 81.35 to revive upside hopes. Else, expect consolidation today, followed by 80.7 in a few days.”
As of 10:15 a.m., the rupee pared some gains but still remained strong at 81.15.
The rupee had hit a record low of 83.29 on Oct. 20.
“The rupee is likely to appreciate further in the month as the dollar is losing steam. Further, rupee may gain strength on the back of optimistic global market sentiments and FII inflows,” ICICI Securities said in a note. “Additionally, a softening of crude oil prices may be supportive for the domestic currency as it will reduce import bills.”
Investors will remain cautious ahead of RBI monetary policy, where the central may slow down the pace of rate hikes, the note stated, adding, that the rate hike is expected to be in the range of 25-35 basis points.
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