Rupee rises 15 paise to close at 79.76 against US dollar

The Indian rupee appreciated 15 paise to close at 79.76 against the US dollar on Thursday on hopes of a slower pace of rate hike by the US Fed in the coming months and firm domestic equities.

At the interbank foreign exchange market, the rupee ended at 79.76 against the US dollar, compared to 79.91 on Wednesday. The local currency has declined 13 paise on Wednesday.

"Hopes for a slower pace of rate hikes pushed DXY and bond yields lower, credit spreads tighter and global equities higher. After digesting FOMC trajectory, DXY bounced back from the lows and now 106.20 acts an immediate support, only a break of it may test 105.64 levels," said Kunal Sodhani, Assistant Vice-President at Shinhan Bank India.

The dollar index, which gauges the dollar's strength against a basket of 6 currencies, rose 0.12 per cent to 106.80.