The rupee strengthened by 16 paise to close at 70.88 against the US dollar on Thursday as investor sentiment got a lift after US President Donald Trump said a trade deal with China could happen sooner than expected.
Robust buying in domestic equities, fresh foreign fund inflows and easing crude oil prices also lent support to the domestic unit, forex traders said.
At the interbank foreign exchange market, the rupee opened on a strong note at 70.99 and shuttled between a high of 70.85 and a low of 71.01 during the day. The domestic currency finally settled at 70.88 per dollar, higher by 16 paise over its previous close.
“Rupee appreciated amid strong equity market sentiments,” HDFC Securities Head PCG and Capital Markets Strategy V K Sharma said, adding that “indications of earlier than expected US-China trade deal strengthened investor sentiments”.