Rupee trades in narrow range against US dollar

Forex traders said the rupee was trading in a narrow range as sustained foreign fund outflows weighed on investor sentiments.

Mumbai: The rupee was trading in a narrow range against the US dollar in early trade on Wednesday, amid a muted trend in domestic equities.

Forex traders said the rupee was trading in a narrow range as sustained foreign fund outflows weighed on investor sentiments.

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At the interbank foreign exchange, the domestic unit opened at 83.31 against the dollar and then touched a high of 83.30, and a low of 83.32 against the greenback.

On Tuesday, the rupee recovered from its all-time low to settle 10 paise higher at 83.28 against the US dollar.

The dollar index fell after the release of FED minutes overnight while the US 10-year bond was constant at 4.41 per cent.

“Participants in FED meeting minutes noted there was limited progress in bringing down core inflation. All agreed to move carefully on rates and said more tightening may be needed,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

The rupee is expected to remain in the current range with the US dollar bids dominating the inflows, Bhansali added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading unchanged at 103.55.

Brent crude futures, the global oil benchmark, fell 0.13 per cent to USD 82.34 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 51.91 points or 0.08 per cent higher at 65,982.68. The broader NSE Nifty advanced 24.55 points or 0.12 per cent to 19,807.95.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they sold shares worth Rs 455.59 crore, according to exchange data.