Mumbai: The rupee on Thursday strengthened in a narrow range against the US dollar and closed 2 paise higher at 83.50 (provisional) for the day on a flat note due to weak domestic markets and a stronger American currency.
Forex traders said large-scale foreign fund withdrawals affected investor sentiments.
In the interbank foreign exchange market, the local unit traded in a limited range. It opened at 83.49 and touched an intraday high of 83.44. The local university finally closed for the day at 83.50 (provisional), up by 2 paise from its previous close.The rupee remained range-bound on Wednesday and closed 1 paise lower at 83.5 against the US dollar.
"The Indian rupee traded flat due to weak domestic markets and a strong US dollar. The overnight rise in crude oil prices also put pressure on the rupee. However, potential dollar inflows at the start of the day weighed on the rupee," said Anu Chaudhary, Research Analyst at Sharekhan. Supported Rs. By BNP Paribas.Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was at 105.70, up 0.15 percent, as the U.S. dollar gained amid hawkish Fedspeak and geopolitical tensions in the Middle East.
"We expect the rupee to trade with a slight downside bias amid strengthening US dollar and selling pressure by foreign investors. However, positive Asian and European markets may support the rupee at lower levels.
“Any intervention by RBI or bond-related foreign inflows may provide support to the rupee at lower levels. Traders may take cues from UK weekly unemployment claims data and speeches by Fed officials.USD-INR spot price is expected to trade in the range of Rs 83.30 to Rs. 83.75,” Chaudhary said.
Brent crude futures, the global oil benchmark, rose 0.57 percent to US$84.0 a barrel.
In the domestic equity market, the 30-share BSE Sensex fell 1,062.22 points, or 1.45 per cent, to close at 72,404.17. The broader NSE Nifty fell 345.0 points or 1.55 per cent to 21,957.50.Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they sold shares worth Rs 6,669.10 crore, according to T exchange data.
Forex traders said large-scale foreign fund withdrawals affected investor sentiments.
In the interbank foreign exchange market, the local unit traded in a limited range. It opened at 83.49 and touched an intraday high of 83.44. The local university finally closed for the day at 83.50 (provisional), up by 2 paise from its previous close.The rupee remained range-bound on Wednesday and closed 1 paise lower at 83.5 against the US dollar.
"The Indian rupee traded flat due to weak domestic markets and a strong US dollar. The overnight rise in crude oil prices also put pressure on the rupee. However, potential dollar inflows at the start of the day weighed on the rupee," said Anu Chaudhary, Research Analyst at Sharekhan. Supported Rs. By BNP Paribas.Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was at 105.70, up 0.15 percent, as the U.S. dollar gained amid hawkish Fedspeak and geopolitical tensions in the Middle East.
"We expect the rupee to trade with a slight downside bias amid strengthening US dollar and selling pressure by foreign investors. However, positive Asian and European markets may support the rupee at lower levels.
“Any intervention by RBI or bond-related foreign inflows may provide support to the rupee at lower levels. Traders may take cues from UK weekly unemployment claims data and speeches by Fed officials.USD-INR spot price is expected to trade in the range of Rs 83.30 to Rs. 83.75,” Chaudhary said.
Brent crude futures, the global oil benchmark, rose 0.57 percent to US$84.0 a barrel.
In the domestic equity market, the 30-share BSE Sensex fell 1,062.22 points, or 1.45 per cent, to close at 72,404.17. The broader NSE Nifty fell 345.0 points or 1.55 per cent to 21,957.50.Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they sold shares worth Rs 6,669.10 crore, according to T exchange data.
