Indian rupee ends tad higher

MUMBAI: The Indian rupee closed marginally higher on Wednesday following a choppy trading session, influenced by maturity of positions in the non-deliverable forwards market, exporter activity, and mild dollar sales from foreign banks.

The rupee ended at 85.7050 against the US dollar, slightly higher from its previous close at 85.7550. The local currency hovered between 85.89 and 85.6850 through the session.

Asian currencies were mixed while the dollar index was little changed at 104.2, with the focus turning to the upcoming announcement of reciprocal US tariffs on April 2.

Near-constant shifts in US tariff policies have left traders unsure of how the announcement is likely to play out.

However, the rupee has benefited from dollar inflows spurred by repatriation of corporate profits and a pick up in foreign portfolio investments over recent sessions.

Overseas investors have bought more than $2 billion worth of Indian shares in the last four days, while month-to-date inflows into bonds stood at little over $3 billion.