Rupee rises 10 paise versus dollar

The rupee appreciated by 10 paise to close at 68.86 against the US dollar on Tuesday, following a robust response to the RBI’s maiden rupee-dollar swap auction. Sustained foreign fund inflows and heavy buying in domestic equities also propped up the local unit, forex traders said. At the interbank forex market, the rupee opened strong at 68.88 against the greenback, but surrendered the gains to slip to a low of 68.98. However, it clawed back lost ground and finally ended at 68.86, up 10 paise against its previous close of 68.96 per dollar. “The success of India’s $5-billion swap auction will decide whether it will become a popular instrument in the central bank’s liquidity tool box,” said VK Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.