Indian rupee stronger

MUMBAI: The Indian rupee closed stronger on Thursday but lagged behind its Asian peers that sharply rallied after the US Federal Reserve delivered a dovish hold on policy rates on Wednesday.

The rupee ended at 83.33 against the US dollar, up by 0.08% compared to its close of 83.40 in the previous session. While the rupee had opened stronger at 83.2725, dollar demand from importers and oil companies ate into the local unit’s gains, traders said.

“The rupee should have gained further... but right now it seems stuck between 83.25 and 83.40,” a foreign exchange trader at a state-run bank said. Local dollar demand is keeping gains at bay, but the rupee should rise to 83.20 gradually if cues remain supportive, the trader added.