<p>Mumbai: The rupee pared most of its initial gains and ended the day higher by 10 paise at 85.26 (provisional) against the American currency on Wednesday, supported by gains in domestic equities and positive macroeconomic data.</p><p>Forex traders said the weakness of the American currency in the overseas market and rising appetite for riskier assets amid easing trade tariff tensions boosted investors' sentiments.</p><p>At the interbank foreign exchange, the domestic unit opened on a positive note and moved between the intra-day high of 85.05 and the low of 85.52 against the greenback. The unit ended the session at 85.26 (provisional), registering a gain of 10 paise over its previous closing level.</p>.<p>On Tuesday, the rupee reversed early gains to settle flat at 85.36 against the US dollar.</p><p>"Bolstered by a weaker US dollar index, cheaper imported commodities, and a prevailing risk-on mood in the markets, the Indian rupee saw gains against the US dollar on Wednesday," said Dilip Parmar, Senior Research Analyst, HDFC Securities.</p><p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.64 per cent lower at 100.35.</p><p>Brent crude, the global oil benchmark, fell 1.10 per cent to USD 65.90 per barrel in futures trade.</p>.Retail inflation declines to 6-year low in April.<p>The retreat in crude oil prices and the overall softening of the greenback acted as tailwinds, specifically supporting the local currency during Wednesday's trading session, Parmar said, adding that in the near future, the USDINR spot rate is anticipated to find a floor near the 84.90 mark, while encountering upward pressure around the 85.70 level.</p><p>In the domestic equity market, the 30-share BSE Sensex advanced 182.34 points, or 0.22 per cent, to close at 81,330.56, while the Nifty rose 88.55 points, or 0.36 per cent, to 24,666.90.</p><p>Foreign institutional investors (FIIs) offloaded equities worth Rs 476.86 crore on a net basis on Tuesday, according to exchange data.</p><p>On the domestic macroeconomic front, India's retail inflation eased to a nearly six-year low of 3.16 per cent in April, creating enough room for the Reserve Bank to go for another round of rate cut in the June monetary policy review.</p><p>Wholesale price inflation dropped to a 13-month low of 0.85 per cent in April with softening in prices of food articles, fuel and manufactured products. </p>
<p>Mumbai: The rupee pared most of its initial gains and ended the day higher by 10 paise at 85.26 (provisional) against the American currency on Wednesday, supported by gains in domestic equities and positive macroeconomic data.</p><p>Forex traders said the weakness of the American currency in the overseas market and rising appetite for riskier assets amid easing trade tariff tensions boosted investors' sentiments.</p><p>At the interbank foreign exchange, the domestic unit opened on a positive note and moved between the intra-day high of 85.05 and the low of 85.52 against the greenback. The unit ended the session at 85.26 (provisional), registering a gain of 10 paise over its previous closing level.</p>.<p>On Tuesday, the rupee reversed early gains to settle flat at 85.36 against the US dollar.</p><p>"Bolstered by a weaker US dollar index, cheaper imported commodities, and a prevailing risk-on mood in the markets, the Indian rupee saw gains against the US dollar on Wednesday," said Dilip Parmar, Senior Research Analyst, HDFC Securities.</p><p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.64 per cent lower at 100.35.</p><p>Brent crude, the global oil benchmark, fell 1.10 per cent to USD 65.90 per barrel in futures trade.</p>.Retail inflation declines to 6-year low in April.<p>The retreat in crude oil prices and the overall softening of the greenback acted as tailwinds, specifically supporting the local currency during Wednesday's trading session, Parmar said, adding that in the near future, the USDINR spot rate is anticipated to find a floor near the 84.90 mark, while encountering upward pressure around the 85.70 level.</p><p>In the domestic equity market, the 30-share BSE Sensex advanced 182.34 points, or 0.22 per cent, to close at 81,330.56, while the Nifty rose 88.55 points, or 0.36 per cent, to 24,666.90.</p><p>Foreign institutional investors (FIIs) offloaded equities worth Rs 476.86 crore on a net basis on Tuesday, according to exchange data.</p><p>On the domestic macroeconomic front, India's retail inflation eased to a nearly six-year low of 3.16 per cent in April, creating enough room for the Reserve Bank to go for another round of rate cut in the June monetary policy review.</p><p>Wholesale price inflation dropped to a 13-month low of 0.85 per cent in April with softening in prices of food articles, fuel and manufactured products. </p>