Rupee rises 3 paise to close at 82.58 against US dollar

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The rupee held in a narrow range and settled for the day, up 3 pounds at 82.58 against the US dollar on Monday, amid a muted trend in local stocks.

The rupee is trading in a narrow range as weakness in the US dollar and continued inflows of manufacturing diffuse risk aversion in global markets, forex traders said.

In the interbank foreign exchange market, the local unit opened at 82.65 against the US dollar and settled at 82.58 (temporary), up 3 piasters from its previous close.

During the day, the local unit witnessed an intraday high of 82.55 and a low of 82.65.

On Friday, the rupee settled at 82.61 against the dollar.

The dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.11 percent to 102.38.

Brent crude futures, the global oil benchmark, fell 0.74 percent to $77.89 a barrel.

“We expect the rupee to trade with a negative bias to risk aversion in global markets, rising bond yields in major global economies and expectations of raising interest rates to tame inflation. However, some weakness in the US dollar and continued inflows of foreign investment contract may support it,” said Anuj Chowdhury, a research analyst. In Sharekhan by BNP Paribas “Rupiah at Lower Levels”.

Chowdhury noted that market participants may remain cautious ahead of India’s inflation and IIP data and US inflation and PPI data this week.

“We expect the US dollar spot price to trade between 82.20 and 83.20 in the near term,” he said.

In terms of the local stock market, the 30-share BSE Sensex closed 63.72 points, or 0.10 percent, at 65,344.17 points. The broader NSE Nifty index advanced 24.10 points, or 0.12 percent, to 19,355.90 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Friday buying shares worth Rs 790.40 crore, according to exchange data.

Meanwhile, the Reserve Bank of India said on Friday that India’s foreign exchange reserves rose by $1.853 billion to $595.051 billion in the week ending June 30.