The rupee on Tuesday appreciated by 21 paise to close at 69.70 against the US dollar as easing crude prices and a weak dollar ahead of the US central bank’s meeting helped the currency snap its three-day losing streak.
Forex dealers said the selling of the American currency by exporters and gain in other Asian currencies also supported the rupee.
The US dollar fell against its major rivals before the US Federal Reserve’s meeting amid expectations that the central bank may signal a rate cut. The dollar index dropped 0.1 per cent to 97.43 Tuesday.
Brent crude futures, the global oil benchmark, eased 0.46 per cent to $60.66 per barrel.
At the interbank foreign exchange market, the rupee opened at 69.82 per dollar and advanced to a high of 69.63 during the day. It finally settled at 69.70, up 21 paise over its last close.
The domestic currency had settled at 69.70 against the US dollar Monday.
“Rupee has broken the three-day losing streak by appreciating 21 paise against the US dollar taking a cue from other strong Asian currencies. The weak trend of Brent crude prices has also augured well for domestic currency,” said V K Sharma, Head-PCG & Capital Market Strategy, HDFC Securities.
