Rupee rises 6 paise to close at 84.44 against US dollar

The rupee recovered from its all-time low level and appreciated 6 paise to close at 84.44 (provisional) against the US dollar on Friday, supported by positive domestic equities.

Forex traders said the rupee is trading in a narrow range as the US dollar strengthened in the overseas market and Brent oil continued to move up as fighting between Ukraine and Russia continued to gain investors' attention.

Moreover, foreign institutional investors have continued their equities selling mode and kept the dollar well bid.

At the interbank foreign exchange, the rupee opened at 84.48 and touched an intraday low of 84.50 against the greenback. The unit ended the session at 84.44 (provisional) against the dollar, registering a rise of 6 paise over its previous close.

On Thursday, the rupee depreciated 8 paise to settle at an all-time low of 84.50 against the US dollar.

"Geopolitical tensions, portfolio outflows, and rallying US Dollar Index are likely to keep the domestic currency under pressure, though the RBI's intervention is leading to a gradual and orderly decline," Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas said.

"The USD/INR pair is expected to rise to ₹85 eventually and support is at ₹84.25," Singh said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.50% at 107.50.

Brent crude, the global oil benchmark, surged 0.31% to $74.46 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex jumped 1,961.32 points, or 2.54%, to close at 79,117.11 points, while Nifty surged 557.35 points, or 2.39%, to settle at 23,907.25 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth ₹5,320.68 crore, according to exchange data.