Mumbai: The rupee on Tuesday lost early gains and closed 5 paise lower at 83.18 (provisional) against the US dollar amid a negative trend in the domestic equity market and demand for the dollar from importers at lower levels.
Forex traders said higher crude oil prices weighed on investor sentiments, leading to the rupee strengthening in a narrow range, while a slide in the US dollar offset the losses.
In the interbank foreign exchange market, the local unit traded in a limited range. It opened at 83.14 and touched a high of 83.10 and low of 83.19 intra-day.
The domestic unit finally closed for the day at 83.18 (provisional), down by a paise from its previous close.On Monday, the rupee pared its early gains and closed at 83.13 against the US dollar for the day.
"We expect the rupee to trade with a slightly positive bias as strengthening domestic markets and hopes of fresh forex inflows may support the rupee," said Anuj Chaudhary, Research Analyst, Sharekhan by BNP Paribas.
Weakness in the US dollar may also provide support to the local unit. However, rising crude oil prices may curb the upside.
“Investors may remain cautious ahead of key PCE price index data later this week,” Chaudhary said.USDINR spot price is expected to trade between Rs 82.90 and Rs 83.50."
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.12 percent lower at 104.47, as investors trimmed their positions ahead of the inflation data.
Brent crude futures, the global oil benchmark, rose 0.18 percent to US$83.2 a barrel.
In the domestic equity market, the 30-share BSE Sensex closed at 75,170.45, down 220.05 points or 0.29 per cent. The broader NSE Nifty fell 44.3 points or 0.19 per cent to 22,888.15.Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth Rs 541.22 crore, according to exchange data.
Forex traders said higher crude oil prices weighed on investor sentiments, leading to the rupee strengthening in a narrow range, while a slide in the US dollar offset the losses.
In the interbank foreign exchange market, the local unit traded in a limited range. It opened at 83.14 and touched a high of 83.10 and low of 83.19 intra-day.
The domestic unit finally closed for the day at 83.18 (provisional), down by a paise from its previous close.On Monday, the rupee pared its early gains and closed at 83.13 against the US dollar for the day.
"We expect the rupee to trade with a slightly positive bias as strengthening domestic markets and hopes of fresh forex inflows may support the rupee," said Anuj Chaudhary, Research Analyst, Sharekhan by BNP Paribas.
Weakness in the US dollar may also provide support to the local unit. However, rising crude oil prices may curb the upside.
“Investors may remain cautious ahead of key PCE price index data later this week,” Chaudhary said.USDINR spot price is expected to trade between Rs 82.90 and Rs 83.50."
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.12 percent lower at 104.47, as investors trimmed their positions ahead of the inflation data.
Brent crude futures, the global oil benchmark, rose 0.18 percent to US$83.2 a barrel.
In the domestic equity market, the 30-share BSE Sensex closed at 75,170.45, down 220.05 points or 0.29 per cent. The broader NSE Nifty fell 44.3 points or 0.19 per cent to 22,888.15.Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth Rs 541.22 crore, according to exchange data.
