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The Rupee was trading in a narrow range and appreciated three paise to 83.25 against the U.S. dollar in early trade on October 19, amid a negative trend in domestic equities.
Forex traders said the Rupee is trading in a narrow range as sustained foreign fund outflows and strength of the American currency in the overseas market weighed on investor sentiments.
At the interbank foreign exchange, the domestic unit opened at 83.26 against the dollar and then touched an early high of 83.25, registering a gain of three paise over its previous close. On Wednesday, the Rupee settled at 83.28 against the U.S. dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% higher at 106.60. Brent crude futures, the global oil benchmark, fell 0.55% to $91 per barrel.
Forex traders said crude oil prices fell as markets await further development from the Israel-Hamas war, while focus remained on upcoming signals from the U.S. Fed.
In the domestic equity market, the 30-share BSE Sensex was trading 435.23 points or 0.66% lower at 65,441.79. The broader NSE Nifty declined 131.00 points or 0.67% to 19,540.10.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on October 18 as they sold shares worth ₹1,831.84 crore, according to exchange data.
“FPIs continued their relentless selling in stocks and this buying of dollars from oil companies who due to steep rise in oil prices have been on the U.S. dollar buy side for the last one month keeping rupee in range as RBI sold dollars,” Anil Kumar Bhansali, head of Treasury and executive director at Finrex Treasury Advisors LLP, said.
