Rupee settles 6 paise lower against US dollar

The rupee consolidated in a narrow range and settled down 6p at 81.88 (tentative) against the greenback on Tuesday as investors preferred to stay on the sidelines ahead of the US Federal Reserve meeting outcome.

In the interbank foreign exchange market, the local unit opened on a positive note at 81.75 but pared early gains to settle 6 piasters at 81.88 against the US dollar despite the strong trend in local stocks.

is reading – Technical Analysis: The rupee remained flat at 81.88

During the day, the rupee touched highs of 81.72 and 81.95 against the US currency.

On Friday, the rupee closed at 81.82 against the greenback.

The forex and stock markets closed on Monday on account of the Maharashtra Day.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.15 percent to 102.30.

Brent crude futures, the global oil benchmark, fell 0.55 percent to $78.87 a barrel.

Forex traders said that investors are waiting for signals from the Federal Open Market Committee meeting that begins later in the day. The market is now awaiting the results of the Federal Open Market Committee (FOMC) on May 3rd.

The rupee has weakened throughout the day as traders and hedgers bet on the dollar ahead of tomorrow’s FOMC policy decision, said Dilip Parmar, research analyst at HDFC Securities.

“USD/INR immediate support is expected to remain at 81.50, 200-day SMA and resistance at 82.30. We expect a near-term short-covering rally before the long-term support line is broken,” Parmar said.

This week will be a short holiday as the market will remain open for only 3 trading sessions.