Rupee Closes Higher Against The Dollar

The rupee closed higher on Thursday after the US dollar index fell to an over five-month low.

The currency strengthened 18 paise to close at 83.17 against the greenback. It opened at Rs 83.29 compared to a close of 83.35 on Wednesday, according to Bloomberg data.

The USDINR will remain range bound despite dollar declines as the RBI might be buying dollars, absorbing the strong inflows from the FPIs and others, while oil companies might continue to buy dollars to fund the month-end demand, Anil Bhansali, executive director at Finrex Treasury Advisors LLP, said.

The DXY extended its slide and dropped below 101, reaching its lowest level since July. The 10-year treasury bond yield fell to 3.78%, a five-month low, while the two-year settled at 4.24%, the lowest since May, according to Kunal Sodhani, vice president of Shinhan Bank.

"Flows continue to play for rupee. For the USDINR, 83.15 acts as a support, while 83.40 a resistance," Sodhani said.