In the midst of flat performance in domestic stocks on Tuesday, the rupee fluctuated within a small range before ending the day 2 paise higher at 82.82 (provisional). According to currency traders, the local currency’s significant advances were restrained by the strength of the U.S. dollar. A high of 82.76 and a low of 82.84 were recorded during intraday activity for the local currency at the interbank foreign exchange market for the U.S. dollar, which opened at 82.82 versus the U.S. currency.
The local unit increased by 2 paise over its previous close to close at 82.82 (provisional). The rupee’s closing value versus the US dollar on Monday was 82.84. The dollar index, which measures the value of the dollar against a basket of six different currencies, increased by 0.32 percent to 103.52.
Benchmark Brent crude futures for world oil decreased 0.03 percent to USD 75.97 per barrel. Due to strong domestic stocks and FII inflows, there was a little bullish bias in the rupee’s trading. Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas, noted that a strong U.S. currency has, however, limited recent gains.
The dollar increased due to hope around the debt ceiling negotiations and aggressive remarks from U.S. Federal Reserve officials. In the immediate future, “we expect the USD-INR pair to trade in between 82.40 and 83.30,” Choudhary said. “We expect the rupee to trade with a negative bias on risk-off sentiments in global markets amid uncertainty over the debt ceiling talks and a strong dollar.”
On the domestic equities market, the broad NSE Nifty increased 33.60 points or 0.18 percent to 18,348.00 points, while the 30-share BSE Sensex increased 18.11 points or 0.03 percent to close at 61,981.79 points. According to exchange data, Foreign Institutional Investors (FIIs) were net purchasers on Monday in the capital market, buying shares worth Rs 922.89 crore.