Rupee gains 1 paise to close at 82.11 against US dollar

The rupee consolidated in a narrow range and settled for the day 1 paise higher at 82.11 against the US dollar on Wednesday, as participants remained on the sidelines ahead of the release of the retail inflation data.

At the interbank foreign exchange market, the local unit opened at 82.08 against the US currency and touched a high of 82.01 during intra-day.

It finally closed at 82.11 against the greenback, registering a gain of 1 paise over its previous close.

On Tuesday, the rupee closed at 82.12 against the US currency.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.51 per cent to 101.69.

Global oil benchmark Brent crude futures advanced 1.53 per cent to USD 86.92 per barrel.

“The Indian rupee tread water along with the dollar index ahead of the crucial inflation data from the US and India. The rupee consolidates in the narrow range with thin volume and volatility even after stronger domestic equities and foreign fund inflows,” said Dilip Parmar, Research Analyst, HDFC Securities.

The market is pricing in for lower inflation readings after last week’s surprise rate pause by RBI.

In the near-term, spot USDINR is expected to trade between 81.70 to 82.50.

According to Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas the Indian rupee appreciated on Wednesday on positive domestic equities and a weak US dollar. However, a surge in crude oil prices and the IMF slashing India’s GDP forecast capped sharp gains.