Rupee settles flat at 82.03 against US dollar
the rupee It held in a narrow range and settled at 82.03 (tentative) against the US dollar on Tuesday, as support faded from positive local stocks and a weak US currency due to higher crude oil prices.
Market participants remained cautious ahead of retail sales data from the US and inflation data from the UK this week, forex traders said.
In the interbank foreign exchange market, the rupee opened at 82.01 against the US dollar and finally settled at 82.03 (tentative), unchanged from the previous close.
During the session, the local unit witnessed the highest level of the day at 81.97 and the lowest level at 82.07.
In the previous session on Monday, the rupee closed at 82.03 against the dollar.
The rupee traded with a slight positive bias on the weak dollar and bullish local markets. Local markets hit new record highs, which boosted the local currency.
The US dollar fell to its lowest level in 15 months amid rising expectations of only one interest rate hike by the US Federal Reserve as inflation fell more than expected.
“We expect the rupee to trade with a slight positive bias due to strength in the domestic markets and weakness in the dollar. Continuous foreign inflows may also support the rupee,” said Anuj Chowdhury – Research Analyst at Sharekhan of BNP Paribas.
“However, risk aversion in global markets and concerns about a global economic slowdown may limit the sharp upside. Market participants may remain cautious ahead of retail sales data, industrial capacity utilization rate data from the US. We expect the US dollar to trade against The US dollar (USDINR) is between 81.60 and 82.50 in the near term, Chaudhry added.
Traders said domestic equity metrics at all-time highs and a weaker US currency abroad boosted investor sentiment and curbed downward bias.
The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.07 percent to 99.77.
Brent crude futures, the global oil benchmark, rose 0.62 percent to $78.99 a barrel.
In the domestic stock market, 30 shares BSE Sensex was trading up 205.21 points, or 0.31 percent at 66795.14. The broader NSE Nifty index advanced 37.80 points, or 0.19 percent, to 19,749.25 points.
Foreign Institutional Investors (FIIs) They were net buyers in the capital markets on Monday buying shares worth Rs 73 crore, according to exchange data.