Mumbai rupee remained range-bound and closed 2 paise lower at 83.51 against the US dollar on Wednesday amid rising overseas crude oil prices and domestic equity selling.
A weakening U.S. currency and an influx of foreign funds limited the local unit's decline, currency traders said.
At the interbank forex market, the rupee opened stable at 83.49 against the dollar and moved in a close range of 83.48 to 83.53 during the session. The local unit finally closed at 83.51 against the US currency, registering a loss of 2 paise over its previous close.
The rupee had risen 1 paise to close at 83.49 against the dollar on Tuesday.
Anuj Choudhary, Sharekhan Research Analyst at BNP Paribas, said the rupee is expected to trade with a slight negative bias due to weak domestic market and positive tone of the dollar.
"Investors may remain cautious ahead of Fed Chair Jerome Powell's testimony before the US Congress and inflation data tomorrow. The USD-INR spot price is expected to trade in a range of 83, 20 to 83.80 rupees," he said.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, fell 0.03 percent to 104.77.
According to Jateen Trivedi, vice president of research and commodity and currency analyst at LKP Securities, the upcoming US inflation data is expected to increase volatility in the foreign exchange market, which could influence the rupee.
"However, RBI's intervention has helped keep the rupee stable. Consequently, the range of rupee can be seen between 83.35-83.40 as resistance and 83.60-83.70 as support," she added. .
Brent crude, the global oil benchmark, rose 0.22 percent to $84.85 a barrel in futures trading.
At the domestic stock market, the 30-share BSE Sensex fell 426.87 points or 0.53 per cent to close at 79,924.77. The broader NSE Nifty lost 108.75 points, or 0.45 per cent, to end the session at 24,324.45.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 583.96 crore, according to exchange data.
A weakening U.S. currency and an influx of foreign funds limited the local unit's decline, currency traders said.
At the interbank forex market, the rupee opened stable at 83.49 against the dollar and moved in a close range of 83.48 to 83.53 during the session. The local unit finally closed at 83.51 against the US currency, registering a loss of 2 paise over its previous close.
The rupee had risen 1 paise to close at 83.49 against the dollar on Tuesday.
Anuj Choudhary, Sharekhan Research Analyst at BNP Paribas, said the rupee is expected to trade with a slight negative bias due to weak domestic market and positive tone of the dollar.
"Investors may remain cautious ahead of Fed Chair Jerome Powell's testimony before the US Congress and inflation data tomorrow. The USD-INR spot price is expected to trade in a range of 83, 20 to 83.80 rupees," he said.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, fell 0.03 percent to 104.77.
According to Jateen Trivedi, vice president of research and commodity and currency analyst at LKP Securities, the upcoming US inflation data is expected to increase volatility in the foreign exchange market, which could influence the rupee.
"However, RBI's intervention has helped keep the rupee stable. Consequently, the range of rupee can be seen between 83.35-83.40 as resistance and 83.60-83.70 as support," she added. .
Brent crude, the global oil benchmark, rose 0.22 percent to $84.85 a barrel in futures trading.
At the domestic stock market, the 30-share BSE Sensex fell 426.87 points or 0.53 per cent to close at 79,924.77. The broader NSE Nifty lost 108.75 points, or 0.45 per cent, to end the session at 24,324.45.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 583.96 crore, according to exchange data.
