Finance
In early trade on Wednesday, the rupee was trading in a limited range against the US dollar, despite a lackluster trend in local stocks. The rupee was trading in a limited range, according to forex traders, as persistent foreign cash outflows weighed on investor morale. The local unit opened at 83.31 against the dollar on the interbank foreign exchange and then reached a high of 83.30 and a low of 83.32 against the greenback.
The rupee recovered from its all-time low on Tuesday, closing 10 paise higher at 83.28 against the US dollar. The dollar index dipped overnight following the release of FED minutes, while the US 10-year bond remained stable at 4.41 percent. “Participants in FED meeting minutes noted there was limited progress in bringing down core inflation. All agreed to move carefully on rates and said more tightening may be needed,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
The rupee is projected to remain in its present range, with US dollar bids dominating inflows, according to Bhansali. The dollar index, which measures the strength of the US currency against a basket of six currencies, was unchanged at 103.55. The global oil benchmark, Brent crude futures, declined 0.13 percent to USD 82.34 per barrel.
The 30-share BSE Sensex was trading 51.91 points, or 0.08 percent, higher at 65,982.68 in the domestic equity market. The broader NSE Nifty rose 24.55 points, or 0.12%, to 19,807.95. According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday, selling shares worth Rs 455.59 crore.
Source:FE
