Rupee rises 5 paise to 83.11 against US dollar
New Delhi: The rupee on Tuesday appreciated by 5 paise to 83.11 (provisional) against the US dollar due to a weak greenback against major currencies amid a soft trend in domestic equities.
At the interbank foreign exchange market, the local unit opened at 83.14 against the greenback. Moving in a very narrow range, the unit touched an intraday low of 83.15 and high of 83.11 against the greenback.
The local unit finally closed at 83.11 against the dollar, higher by 5 paise (provisional) from its previous close.
On Monday, the rupee fell 5 paise to 83.16 against the US dollar.
According to Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, the rupee gained on Tuesday due to weakness in the US dollar and fall in crude oil prices from higher levels.
However, weak domestic markets capped sharp gains. The US dollar weakened slightly due to increased risk appetite in global markets.
“We expect the rupee to trade with a slight downside bias due to month-end dollar demand from importers and concerns over geopolitical tensions in the Middle East and the Red Sea.
“Any improvement in US dollar or crude oil prices may also impact the rupee. However, increased risk appetite in global markets may provide support to the rupee at lower levels,” Choudhary said.
“Investors may remain cautious ahead of the US FOMC meeting and India’s Budget later this week. USD/INR spot price is expected to range between Rs 82.90 to Rs 83.40,” he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 percent lower at 103.55.
oil prices
Global oil benchmark Brent crude futures rose 0.27 percent to US$82.62 per barrel.
household index
On the domestic equity market front, Sensex fell 801.67 points or 1.11 per cent to 71,139.90. Nifty fell 215.50 points or 0.99 percent to 21,522.10 points.
FII
Foreign institutional investors (FIIs) were net buyers in the capital market on Monday as they bought shares worth Rs 110.01 crore, according to exchange data.
