New Delhi, August 13 (HS): The Indian rupee ended higher against the US dollar on Tuesday, buoyed by strong global sentiment, a rally in domestic equities, and weakness in the dollar index. The local currency gained 27 paise to settle provisionally at ₹87.45 per dollar, improving from the previous close of ₹87.72.

The upbeat tone was evident from the start, with the rupee opening 7 paise stronger at ₹87.65 in the interbank foreign exchange market. It briefly slipped to 87.73 in early trade amid mild negative cues, but a sharp turnaround in the stock market and foreign fund inflows pushed it up 32 paise from the day’s lows to touch ₹87.41 before closing firm.

Global and Domestic Boosters

Currency market experts said optimism ahead of the August 15 meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska, combined with expectations of a US Federal Reserve interest rate cut, lifted global risk appetite. This, in turn, revived investor interest in emerging markets such as India.

On the home front, easing retail inflation further strengthened confidence, while a 0.37% dip in the US dollar index added additional support to the rupee’s rally. Rajiv Datta, CEO of Capex Gold & Investments, noted that “global tailwinds coupled with favourable domestic macro data have boosted foreign inflows, bolstering the rupee.”

Mixed Performance Against Other Majors

While the rupee advanced against the dollar, it lost ground against other major currencies. It fell 66 paise against the British pound to close at 118.72 and dropped 78 paise versus the euro to 102.58.

The session underscored the rupee’s sensitivity to both external geopolitical developments and domestic macroeconomic trends, with traders watching closely for signals from global central banks and upcoming economic data releases.

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Hindusthan Samachar / Jun Sarkar