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| Photo Credit: Reuters
Rupee consolidated in a narrow range and settled for the day higher by 3 paise at 83.24 (provisional) against the U.S. dollar on October 17 amid a positive trend in domestic equities.
Forex traders said the rupee is trading with a slight positive bias on positive domestic markets. However, a strong U.S. dollar and concerns over the ongoing conflict in the Middle East capped sharp gains.
At the interbank foreign exchange market, the local unit opened at 83.24 against the U.S. dollar and moved in a range of 83.22 to 83.26 in the day trade.
The rupee finally settled 3 paise higher at 83.24 (provisional) against the previous close.
On Monday, the rupee settled at 83.27 against the U.S. dollar.
“We expect the rupee to trade with a slight positive bias on the rise in risk appetite in global markets and decline in crude oil prices. Diplomatic efforts to contain the Middle East conflict may also support the risk assets,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
However, elevated U.S. dollar and any further escalation on geopolitical tensions between Hamas and Israel may cap sharp gains.
“Selling pressure from FIIs and RBI’s maturing of dollar/rupee swap transactions may pressurise the rupee at higher levels. Traders may take cues from retail sales and industrial production data from the US. USD-INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.70,” Choudhary added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.09% to 106.33.
Brent crude futures, the global oil benchmark, advanced 0.41% to $90.02 per barrel.
On the domestic equity market front, the BSE Sensex closed 261.16 points or 0.39% higher at 66,428.09. The broader NSE Nifty advanced 79.75 points or 0.4% to 19,811.50.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they sold shares worth ₹593.66 crore, according to exchange data.
