Rupee gains 6 paise to close at 81.81 against US dollar

The rupee consolidated in a narrow range and settled for the day, up 6 pounds at 81.81 (temporary) against the US dollar on Wednesday, tracking the weakness of the greenback in foreign markets.

Forex dealers said large foreign money inflows and crude oil prices below $75 a barrel also supported local unity.

In the interbank foreign exchange market, the local unit opened at 81.80 against the US currency and finally closed at 81.81 (temporary), recording gains of 6 pounds from its previous close.

During the session, the rupee touched highs of 81.75 and 81.86 against the dollar.

On Tuesday, the rupee closed at 81.87 against the greenback.

The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.41 percent to 101.54.

Brent crude futures, the global benchmark, fell 2.04 percent to $73.78 a barrel.

The Indian rupee appreciated on the weak US dollar and the sharp drop in crude oil prices. However, the sharp gains were capped by weak local stocks, said Anuj Chowdhury – Research Analyst at Sharekhan by BNP Paribas.

“We expect the rupee to trade with a slight negative bias on risk aversion in global markets amid renewed concerns about the banking crisis in the US and concerns about the global economic recovery.

“However, the weakness of the dollar and the continued decline in crude oil prices may prevent a sharp decline in the rupee,” Chowdhury said.

Continuing FII inflows may also support the rupee at lower levels. Investors may remain cautious ahead of the FOMC meeting results and the ISM Services PMI.

“The Fed is expected to raise interest rates by 25 basis points. Traders may also remain cautious ahead of NFP data later this week. We expect spot USDINR to trade between 81.30 to 82.30 in the near term,” Chowdhury said. .

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday buying shares worth Rs 1,997.35 crore, according to exchange data.