Mumbai: The rupee on Tuesday rose 2 paise to 83.43 against the US dollar amid fresh foreign capital inflows amid volatility in domestic stock markets.
According to forex analysts, the domestic currency initially faced resistance from a stronger greenback and a rise in crude oil prices, but recovered the lost ground during the session due to a sharp rise in equities in afternoon trade.
At the interbank foreign exchange market, the local unit opened at 83.46 and traded between 83.41 and 83.52 against the greenback during the session.
The domestic currency finally closed at 83.43 against the dollar, registering a gain of 2 paise from its previous close.
The rupee fell 7 paise to close at 83.45 against the US dollar on Monday, after falling 10 paise in the previous session on Friday.Jatin Trivedi, VP Research Analyst – Commodity & Currency, LKP Securities said: “Volatility in the capital markets kept the rupee in a range bound range. Participants are closely keeping an eye on the upcoming interest rate decision in the US for possible price action in the rupee “The rupee remains stable, albeit in a steady manner.”
Analysts also said investors were remaining cautious ahead of the US Federal Reserve's interest rate decision and macroeconomic data coming from the US and domestic manufacturing growth data.
The Federal Open Market Committee (FOMC) meeting begins on Tuesday and the interest rate decision is expected to be announced on Wednesday.Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, rose 0.13 percent to 105.58.
Brent crude futures, the global oil benchmark, rose 0.15 percent to US$88.5 a barrel.
On the domestic equity market front, Sensex fell 188.50 points or 0.25 per cent to 74,482.78 and Nifty fell 38.55 points or 0.17 per cent to 22,604.85.
Foreign institutional investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth Rs 1,071.93 crore on a net basis, according to exchange data.
According to forex analysts, the domestic currency initially faced resistance from a stronger greenback and a rise in crude oil prices, but recovered the lost ground during the session due to a sharp rise in equities in afternoon trade.
At the interbank foreign exchange market, the local unit opened at 83.46 and traded between 83.41 and 83.52 against the greenback during the session.
The domestic currency finally closed at 83.43 against the dollar, registering a gain of 2 paise from its previous close.
The rupee fell 7 paise to close at 83.45 against the US dollar on Monday, after falling 10 paise in the previous session on Friday.Jatin Trivedi, VP Research Analyst – Commodity & Currency, LKP Securities said: “Volatility in the capital markets kept the rupee in a range bound range. Participants are closely keeping an eye on the upcoming interest rate decision in the US for possible price action in the rupee “The rupee remains stable, albeit in a steady manner.”
Analysts also said investors were remaining cautious ahead of the US Federal Reserve's interest rate decision and macroeconomic data coming from the US and domestic manufacturing growth data.
The Federal Open Market Committee (FOMC) meeting begins on Tuesday and the interest rate decision is expected to be announced on Wednesday.Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, rose 0.13 percent to 105.58.
Brent crude futures, the global oil benchmark, rose 0.15 percent to US$88.5 a barrel.
On the domestic equity market front, Sensex fell 188.50 points or 0.25 per cent to 74,482.78 and Nifty fell 38.55 points or 0.17 per cent to 22,604.85.
Foreign institutional investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth Rs 1,071.93 crore on a net basis, according to exchange data.
