Finance
The rupee fell 13 paise to 81.82 against the US dollar in early trade on Wednesday, as a stronger US dollar and higher crude oil prices weighed on investor sentiment.
At the interbank foreign exchange, the domestic unit opened weak at 81.80 against the dollar before falling to 81.82, a 13-paise drop from its previous close.
The rupee closed at 81.69 against the US dollar in the previous session on Tuesday.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.49 percent to 102.88.
Brent crude futures rose 0.65% to USD 86.48 per barrel, the global oil benchmark.
According to traders, market participants are still cautious ahead of the Bank of Japan’s policy statement.
The Bank of Japan has been by far the most dovish central bank, employing a variety of unconventional tools to maintain its ultra-accommodative policy. Any deviation from this policy would thus represent a significant shift, according to IFA Global Research Academy in a research note.
“We anticipate the USD/INR spot to trade in a range of 81.55-81.85, with sideways price action,” it added.
The 30-share BSE Sensex was trading 157.99 points, or 0.26 percent, higher at 60,813.71 in the domestic equity market. The NSE Nifty gained 44.60 points, or 0.25 percent, to 18,097.90.
On Tuesday, Foreign Institutional Investors (FIIs) became net buyers in the capital markets as they purchased shares worth Rs 211.06 crore, according to exchange data.
Source:BS
