Finance
The rupee consolidated in a narrow range and settled for the day 3 paise lower at 82.78 (provisional) against the US dollar on Tuesday, as market participants remained on the sidelines ahead of the release of key macroeconomic data.
According to forex traders, the US dollar’s strength and the rise in crude oil prices caused the Indian rupee to slightly weaken. Nonetheless, the local unit was maintained at lower levels over the previous three days by strong domestic markets and ongoing inflows of foreign funds.
The local unit on the interbank foreign exchange market opened at 82.74 and moved up to 82.72 versus the US dollar, touching an intraday low of 82.78. At last, the local currency closed at 82.78 (provisional) against the US dollar, down 2 paise from its previous closing.
On Monday, the rupee declined by 8 paise to settle at 82.75 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01 per cent lower at 102.85, ahead of inflation data from the US.
Brent crude futures, the global oil benchmark, advanced 0.81 per cent to USD 82.88 per barrel.
“We expect the rupee to trade with a slight negative bias on recovery in the greenback and concerns over elevated crude oil prices. However, a positive tone in domestic markets may support the rupee at lower levels.
“Traders may take cues from India’s CPI and IIP data. Market participants may remain cautious ahead of inflation and budget deficit data from the US. USD-INR spot price is expected to trade in a range of Rs 82.50 to Rs 83,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.
On the domestic equity market front, Sensex jumped 165.32 points, or 0.22 per cent, to settle at 73,667.96 points. The Nifty rose 3.05 points, or 0.01 per cent, to close at 22,335.70 points.
According to exchange data, foreign institutional investors (FIIs) purchased shares worth Rs 4,212.76 crore on Monday, making them net purchasers in the capital markets.
Source:FE
