Rupee rallies 21 paise to 96.24 against US dollar on lower oil prices and forex inflows

Mumbai: The rupee climbed 21 paise to close at 96.24 Tuesday, as lower oil prices tempered demand for the US currency amid RBI revelations that dedicated programmes aimed at drawing durable forex inflows had garnered nearly $21 billion.

“The recovery today was because oil companies weren’t buying dollars and foreign currency inflow continued to support sentiments. State run banks, likely on behalf of the central bank, sold dollars in the first half of the day, as support was lent around 96.42 levels,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors. The local unit had ended Monday at 96.45 to a dollar.

The currency was trading around 96.50 to 96.55 just before domestic markets opened, but dollar sales by the RBI in the offshore market got the rupee to open at 96.41 per dollar. The rupee traded in the range of 96.42 and 96.12 on Tuesday.