Mumbai: The rupee strengthened in a narrow range on Wednesday and closed 2 paise lower at 83.33 against the US dollar as a rising US currency negated positive domestic equity support.
Forex traders said higher crude oil prices and significant forex outflows in the international market weighed on investor sentiments.
At the interbank foreign exchange market, the local unit opened at 83.29 against the greenback. The unit touched an intra-day high of 83.26 and low of 83.3 against the greenback.
The domestic unit finally closed at 83.33 against the dollar, 2 paise lower than its previous close.On Tuesday, the rupee closed at 83.31 against the American currency.
Forex traders said the rupee is expected to trade with a slightly positive bias on improving global risk sentiments and easing geopolitical tensions in the Middle East. However, any fresh aggression in the Middle East could limit the local entity's gains.
Brent crude futures, the global oil benchmark, fell 0.34 percent to US$88.1 per barrel.
“We may see some occasional price volatility due to geopolitical risks in the Middle East and fresh energy sanctions discussions or in Iran, but we expect short-term upside,” said Mohammad Imran, research analyst at Sharekhan by BNP. Prices will remain at US$85."Paribas.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was 0.16 percent higher, at 105.84.
Anuj Choudhary, research analyst at Sharekhan, said, “We expect the rupee to trade with a slightly positive bias due to increased risk appetite in global markets and easing geopolitical tensions in the Middle East. However, the Fed's hawkish comments will keep the dollar at lower levels. But can support." By BNP Paribas.
However, any fresh aggression in the Middle East could quickly backfire.Traders can take cues from durable goods orders data from the US. Investors may remain cautious ahead of inflation data later this week. The USD-INR spot price is expected to range between Rs 83.05 to Rs 83.50, Chaudhary said.
On the domestic equity market front, Sensex closed 114.49 points or 0.16 per cent higher at 73,852.94. Nifty closed at 22,402.40, up 34.40 points or 0.15 percent.Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they sold shares worth Rs 2,511.74 crore, according to T exchange data.
Forex traders said higher crude oil prices and significant forex outflows in the international market weighed on investor sentiments.
At the interbank foreign exchange market, the local unit opened at 83.29 against the greenback. The unit touched an intra-day high of 83.26 and low of 83.3 against the greenback.
The domestic unit finally closed at 83.33 against the dollar, 2 paise lower than its previous close.On Tuesday, the rupee closed at 83.31 against the American currency.
Forex traders said the rupee is expected to trade with a slightly positive bias on improving global risk sentiments and easing geopolitical tensions in the Middle East. However, any fresh aggression in the Middle East could limit the local entity's gains.
Brent crude futures, the global oil benchmark, fell 0.34 percent to US$88.1 per barrel.
“We may see some occasional price volatility due to geopolitical risks in the Middle East and fresh energy sanctions discussions or in Iran, but we expect short-term upside,” said Mohammad Imran, research analyst at Sharekhan by BNP. Prices will remain at US$85."Paribas.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was 0.16 percent higher, at 105.84.
Anuj Choudhary, research analyst at Sharekhan, said, “We expect the rupee to trade with a slightly positive bias due to increased risk appetite in global markets and easing geopolitical tensions in the Middle East. However, the Fed's hawkish comments will keep the dollar at lower levels. But can support." By BNP Paribas.
However, any fresh aggression in the Middle East could quickly backfire.Traders can take cues from durable goods orders data from the US. Investors may remain cautious ahead of inflation data later this week. The USD-INR spot price is expected to range between Rs 83.05 to Rs 83.50, Chaudhary said.
On the domestic equity market front, Sensex closed 114.49 points or 0.16 per cent higher at 73,852.94. Nifty closed at 22,402.40, up 34.40 points or 0.15 percent.Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they sold shares worth Rs 2,511.74 crore, according to T exchange data.
