Image used for representational purpose only.
| Photo Credit: Reuters

The rupee consolidated in a narrow range and settled for the day 3 paise lower at 82.78 (provisional) against the U.S. dollar on Tuesday, as market participants remained on the sidelines ahead of the release of key macroeconomic data.

Forex traders said the Indian rupee declined marginally on positive U.S. dollar and recovery in crude oil prices. However, positive domestic markets and sustained foreign fund inflows over the past three sessions supported the local unit at lower levels.

At the interbank foreign exchange market, the local unit opened at 82.74 and touched the intra-day low of 82.78 and a high of 82.72 against the greenback. The local unit finally settled at 82.78 (provisional) against the dollar, registering a loss of 2 paise from its previous close.

On Monday, the rupee declined by 8 paise to settle at 82.75 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 102.85, ahead of inflation data from the U.S.

Brent crude futures, the global oil benchmark, advanced 0.81% to $82.88 per barrel.

“We expect the rupee to trade with a slight negative bias on recovery in the greenback and concerns over elevated crude oil prices. However, a positive tone in domestic markets may support the rupee at lower levels.

“Traders may take cues from India’s CPI and IIP data. Market participants may remain cautious ahead of inflation and budget deficit data from the U.S. USD-INR spot price is expected to trade in a range of ₹82.50 to ₹83,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

On the domestic equity market front, Sensex jumped 165.32 points, or 0.22%, to settle at 73,667.96 points. The Nifty rose 3.05 points, or 0.01%, to close at 22,335.70 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Monday as they bought shares worth ₹4,212.76 crore, according to exchange data.

The rupee witnessed range-bound trading in initial deals against the U.S. dollar on March 12. Image for representation purposes only. File
| Photo Credit: Reuters

The rupee witnessed range-bound trading in initial deals against the U.S. dollar on March 12, as market participants remained on the sidelines ahead of the release of key macroeconomic data.

Forex traders said focus will be on the U.S. Feb CPI print and on the domestic front, Feb CPI print and Jan IIP are due post market hours.

Meanwhile, positive domestic equities, foreign fund inflows and broad weakness of the American currency in the overseas market aided investor sentiments, while rising crude oil prices weighed on the local unit.

At the interbank foreign exchange, the rupee opened at 82.74 against the greenback, then touched 82.72, registering a rise of 3 paise over its previous closing price.

On Monday, the rupee declined by 8 paise to settle at 82.75 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% lower at 104.80.

Brent crude futures, the global oil benchmark, advanced 0.36% to $82.51 per barrel.

Forex traders said FDI-related inflows may support the rupee at lower levels. A recovery in domestic equities also supported the rupee. However, market participants are likely to remain cautious ahead of the release of inflation data from India and the U.S.

“Rupee ended at 82.75 on Monday. It is likely to open around 82.75 and trade in an 82.70-82.80 range with sideways price action,” IFA Global Research Academy said in a note.

On the domestic equity market front, Sensex advanced 413.78 points, or 0.56%, to settle at 73,916.42 points. The Nifty rose 94.10 points, or 0.42%, to close at 22,426.75 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Monday as they bought shares worth ₹4,212.76 crore, according to exchange data.

On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02% at 65,087.25 points. Image for representation purpose only. File
| Photo Credit: Reuters

The rupee recovered 6 paise to settle at 82.74 (provisional) against the U.S. currency on Wednesday following weakness in the U.S. dollar in global markets.

FII inflows into the capital market and firm equity markets supported the local unit while gains in crude oil prices restricted the rupee upside, according to analysts.

At the interbank foreign exchange, the domestic unit opened higher at 82.67 amid overnight losses in the U.S. dollar against major global rivals. It moved between a high of 82.66 and a low of 82.81 in intra-day trade.

The rupee finally closed at 82.74 against the dollar, a gain of 6 paise compared to the closing level of 82.80 on Tuesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% lower at 103.50 after U.S. data suggested that labour market was cooling, a scenario that could provide support for the U.S. Federal Reserve in eventual easing interest rates.

Brent crude futures, the global oil benchmark, rose 0.56% to $85.97 per barrel.

On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02% at 65,087.25 points while the broader Nifty advanced by 4.80 points to close at 19,347.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth ₹61 crore, according to exchange data.