Rupee extends winning run for 6th day against US dollar, gains 7 paise

The rupee appreciated by 7 paise to settle at a fresh one-month high of 70.85 against the US dollar on Wednesday on the back of firm domestic equities and easing crude oil prices, extending its winning run for the sixth straight session.

Forex traders said the domestic unit gained ground ahead of the release of key macro-economic numbers on Thursday.

At the interbank foreign exchange market, the rupee opened at 70.87 against the US dollar. During the day, the domestic unit fluctuated between a high of 70.74 and a low of 70.94.

The local unit finally settled the day at 70.85, up 7 paise over its last close. The rupee had settled at 70.92 against the US dollar on Tuesday.

"Rupee continued to trade higher against the US dollar ahead of the important inflation and industrial production number that will be released tomorrow. Expectation is that the number could disappoint and could keep gains capped for the currency," Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private Ltd.

Somaiyaa further said, "Volatility could also be confined ahead of the important FOMC and ECB policy statement that will be important to trigger a move for the dollar that has been consolidating in a narrow range. We expect the USDINR to quote in the range of 70.70 and 71.20(Spot)."