Rupee gains for fifth straight session; ends 11 paise higher at 85.51/$

Indian Rupee today: The domestic currency appreciated 11 paise to end at 85.51 against the dollar, after closing at 85.62 on Tuesday

The Indian Rupee ended higher, breaking a two-day flat trend, as easing tensions following the second day of US-China trade talks lifted market sentiment.

 

The domestic currency appreciated 11 paise to end at 85.51 against the greenback, after closing at 85.62 on Tuesday, according to Bloomberg. Even though the currency traded flat for two days, the unit has gained for the fifth consecutive session. 

 

While currency has traded nearly flat so far this year, the Asian currencies have posted gains amid a broader dollar weakness. During the day, Asian currencies saw a range-bound trade on easing trade tensions. 

 

 

  The rupee’s intraday range over the last two sessions has been limited to just about 20 paisa, underscoring how volatility has subsided, according to a Reuters report. The 10-day daily realised volatility has fallen to its lowest level in more than two months.  

 

The US and China agreed to a plan to ease trade tensions, with both sides agreeing to implement the consensus the two sides reached in the prior round of talks in Geneva. Meanwhile, a US federal appeals court has allowed Trump's most sweeping tariffs to stay in place, while it reviews a lower court decision to block them.

 

The dollar index, which measures the greenback against a basket of six major currencies, was down 0.07 per cent at 99.02. Further, the Trump administration is pushing for Treasury Secretary Scott Bessent to serve as the next chair of the Federal Reserve. 

 

Meanwhile, the dollar index is expected to take direction from the US consumer price inflation data due later today, which could offer clues on the future course of the Federal Reserve’s policy rates.

 

There are no significant inflows or outflows expected in the near term, and the currency continues to hold within a broad range of 85.00–86.00 and a narrower band of 85.25–85.75, Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, said. 

 

In commodities, crude oil prices rose after falling in early trade on Wednesday as markets were still assessing the outcome of US-China trade talks. Brent crude price was up 0.90 per cent to $67.47 per barrel, while WTI crude prices were higher by 1.09 per cent at 65.69, as of 3:45 PM IST.