Rupee Recovers Amid Reports Of Yet Another Hike In Repo Rate And Weak Dollar

The rupee has finally made gains after record lows as the Indian currency closed 15 paise higher at 77.55 against the US currency on Monday amid reports of weak dollar in the global markets and indication by RBI governor for yet another repo rate hike in June to keep the mounting inflation under control.

The domestic unit opened at 77.69 at the interbank forex market against US Dollar. Rupee hovered in the range of 77,51 to 77.69 during the session. And, finally the Indian currency managed to break its three-session losing streak to end at 77.55 with a gain of 15 paise over its earlier close. Earlier on Friday, the rupee had ended at a record low of 77.70 against the US Dollar.

Meanwhile, Asian currencies mostly remained stronger as the dollar index dipped and aided sentiments.

According to Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services, the rupee continued to consolidate and volatility remained confined to a narrow range despite choppiness in domestic equities.

"Today volatility for the dollar could remain low as no major economic data is expected to be released from the US. We expect the USD-INR (Spot) to trade sideways and quote in the range of 77.20 and 77.80," Somaiya added.