Rupee rises 16 paise to settle at 85.39 against US dollar

Mumbai, Jun 2: The rupee appreciated 16 paise to settle at 85.39 against the US dollar on Monday, supported by a weak American currency and on expectations of a further reduction in key interest rate by the Reserve Bank.

However, a sharp gain in the local unit was prevented due to volatile equity markets, outflow of foreign funds and higher crude oil prices, forex traders said.

RBI's Monetary Policy Committee (MPC) will begin the deliberations on its next bi-monthly policy on June 4 and the outcome is scheduled to be announced on June 6.

At the interbank foreign exchange, the domestic unit opened at 85.55 and moved between a high of 85.30 and low of 85.55 against the greenback during the day. The unit ended the session at 85.39, registering a gain of 16 paise from its previous closing level.

On Friday, the rupee ended 7 paise lower at 85.55 against the dollar.