Rupee closes 1 paisa lower at 83.38 against US dollar

The rupee consolidated in a narrow range and settled 1 paisa lower at 83.38 (provisional) against the US dollar on Tuesday, as investors remained cautious ahead of the release of domestic inflation data and the upcoming US Fed meeting.

Besides, selling pressure in the domestic equity markets dented market sentiment, forex traders said.

However, the American currency’s weakness against major currencies overseas restricted the loss in the local currency, they added.

At the interbank foreign exchange market, the local unit opened at 83.36 and settled at 83.38 (provisional) against the greenback, registering a loss of 1 paisa from its previous close.

In intra-day trade, the rupee touched a high of 83.35 and a low of 83.39.

On Monday, the domestic currency settled at 83.37 against the US dollar.

Investors remained concerned over domestic inflation data as well as industrial production numbers to be announced later in the day.

Currency traders were also awaiting the US Federal Reserve’s monetary policy decision, likely to be announced later this week.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.28 per cent lower at 103.41 on Tuesday.

Brent crude futures, the global oil benchmark, advanced 0.34 per cent to $76.29 per barrel.

On the domestic equity market front, the 30-share benchmark BSE Sensex plunged 377.50 points, or 0.54 per cent, to settle at 69,551.03 points. The Nifty also fell 90.70 points, or 0.43 per cent, to 20,906.40 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday as they bought shares worth Rs 1,261.13 crore, according to exchange data.