Rupee opens flat against US dollar in early trade

Forex traders noted the rupee's resilience against the dollar, influenced by consumer price index data and the US Federal Reserve's policy decision.

Mumbai: The rupee opened on a flat note against the US dollar in early trade on Friday, weighed down by a negative trend in domestic equities and the strength of the American currency in the overseas markets.

Forex traders said rupee was seen resilient against the dollar, due to consumer price index data and US Federal Reserve’s policy decision.

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Market participants will keenly watch India’s trade balance data due later in the day as any decrease in the deficits would bring a breather for the rupee.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.54 against the American currency and touched 83.52 in the initial trade.

On Thursday, the rupee settled for the day lower by 6 paise at 83.54 against the US dollar.

“The rupee remains steady, due to the Reserve Bank of India’s active management and ever-growing forex reserves,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.29, higher by 0.09 per cent.

Brent crude futures, the global oil benchmark, fell 0.44 per cent to USD 82.39 per barrel.

“The Indian rupee remained range-bound on Thursday and is expected in a similar narrow range today also as foreign portfolio investors buy dollars and the Reserve Bank of India (RBI) sells them,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

On the domestic equity market, the 30-share BSE Sensex was trading 213.02 points, or 0.28 per cent lower at 76,597.88 points. The broader NSE Nifty was down 48.05 points, or 0.21 per cent, to 23,350.85 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 3,033.00 crore, according to exchange data.

Meanwhile, Moody’s Ratings on Thursday said India will remain the Asia-Pacific region’s fastest-growing economy in 2024, sustaining last year’s domestically-driven momentum.