The rupee maintained in a limited range to trade barely 1 paisa higher at 82.62 (provisional) against the US dollar on Tuesday amid a lackluster trend in domestic stocks. The rupee is trading in a limited range as market participants prepare for the RBI’s monetary policy announcement later this week.
The central bank is widely expected to maintain the repo rate at 6.5 percent.According to forex traders, the growth of the US dollar on international markets sustained pressure on the domestic currency. The local unit opened at 82.56 versus the US dollar on the interbank foreign currency market and closed at 82.62 (provisional), up 1 paisa from its previous closing.
During the day, the domestic unit witnessed an intra-day high of 82.56 and a low of 82.66. The rupee finished at 82.63 versus the US dollar on Monday. The dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.12% to 104.12. Brent crude futures fell 1.60 percent to USD 75.48 per barrel, the global oil benchmark.According to forex traders, the Reserve Bank’s rate-setting monetary policy committee began deliberations on Tuesday.
Headed by Reserve Bank Governor Shaktikanta Das, the six-member Monetary Policy Committee (MPC) would meet for three days and the conclusion would be released on Thursday.
The 30-share BSE Sensex rose 5.41 points, or 0.01 percent, to end at 62,792.88 points, while the broader NSE Nifty rose 5.15 points, or 0.03 percent, to 18,599.00 points.According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital market on Monday, offloading shares worth Rs 700.98 crore.
Source:FE