Mumbai: The Indian rupee gained against US dollar. As per forex traders, sustained foreign fund inflows and weak US dollar supported the upward rally of the Indian currency. However, widening of trade deficit, a weaker start in the domestic equity markets and a rise in Brent crude prices capped further gains in the local currency.
At the interbank foreign exchange, the rupee opened strong at 85.28 against the US dollar before dropping to 85.42, higher by 12 paise from its previous close. On Thursday, the rupee depreciated 22 paise to close at 85.54 against the US dollar.
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The dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading lower by 0.24 per cent at 100.641.
Meanwhile, India’s exports rose 9.03 per cent to USD 38.49 billion in April on Thursday — the highest in six months. However, the trade deficit widened to a five-month high of USD 26.42 billion as imports rose 19.12 per cent year-on-year to USD 64.91 billion in April due to a rise in shipments of crude oil and fertiliser.
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