Rupee gains 38 paise to close at 2-week high against dollar

Mumbai, Aug. 30 (PTI): The rupee appreciated by 38 paise to close at a two-week high of 71.42 against the US dollar on Friday led by a rally in domestic equities and renewed hopes of the US-China trade talks.

At the interbank foreign exchange, the rupee opened up at 71.76 and gained further strength to touch a high of 71.38 against the US dollar.

The domestic currency finally settled with a gain of 38 paise of 0.53 per cent at 71.42, a level not seen since August 16.

The BSE Sensex ended 263.86 points, or 0.71 per cent, higher at 37,332.79. Similarly, the broader NSE Nifty rose 74.95 points, or 0.68 per cent, to close at 11,023.25.

The rupee sentiment revived as concerns over US-China trade friction receded after China said it will not retaliate against the latest US tariffs, dealers said.

A fall in crude oil prices also supported the rupee move. Brent crude futures, the global oil benchmark, declined 0.38 per cent to USD 60.85 per barrel.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.05 per cent to 98.55.

The 10-year government bond yield was up at 6.57 per cent.