Rupee fell 3 paise to close at 83.31 against US dollar
New Delhi: In view of the strong US currency overseas, the rupee strengthened in a limited range against the US dollar on Wednesday and closed at 83.31 (provisional), down 3 paise.
Forex traders said a soft trend in domestic equities also weighed on the local unit, while improvement in oil prices supported the currency.
At the interbank foreign exchange market, the local unit opened at 83.31 and touched a low of 83.34 against the greenback.
It finally closed at 83.31 (provisional) against the dollar, showing a fall of 3 paise from its previous close.
On Tuesday, the rupee recovered from its all-time low and closed 10 paise higher at 83.28 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.18 percent higher at 103.75.
oil prices
Brent crude futures, the global oil benchmark, fell 0.79 percent to US$81.80 a barrel.
The US dollar recovered after the Federal Open Market Committee (FOMC) minutes released on Tuesday showed that the monetary policy stance was slightly tighter.
“We expect the rupee to trade with a slightly positive bias against dollar inflows due to IPOs in the domestic markets. However, a positive trend in the US dollar and expectations of a rise in crude oil prices may keep the upside capped. ,” said Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas.
The USD-INR spot price is expected to trade between 83 and 83.60, Chaudhary said.
household index
On the domestic equity market front, Sensex closed 92.47 points or 0.14 per cent higher at 66,023.24. Nifty rose 28.45 points or 0.14 percent to 19,811.85.
FII
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday as they sold shares worth Rs 455.59 crore, according to exchange data.
