Rupee trades in narrow range against US dollar in early trade

Forex traders said investors are watching on the sidelines and awaiting cues from ensuing FOMC meeting and US FED decision this week.

Mumbai: The rupee witnessed range-bound trading against the US dollar in early trade on Monday as crude oil prices hovering above USD 80 per barrel and a negative trend in domestic equities weighed on investor sentiments.

Forex traders said investors are watching on the sidelines and awaiting cues from ensuing FOMC meeting and US FED decision this week.

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At the interbank foreign exchange, the rupee opened at 82.00 against the dollar, and touched 82.01, registering a fall of 3 paise over its previous close.

In initial trade the rupee touched a high of 81.98 against the American currency.

On Friday, the rupee closed at 81.98 against the US currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.05 to 101.01.

Brent crude futures, the global oil benchmark, was trading 0.10 per cent lower at USD 80.99 per barrel.

According to Finrex Treasury Advisors LLP Head of Treasury Anil Kumar Bhansali, as the US dollar index rises to 101.10, Asian currencies were trading down against the dollar. The rupee opened near to 82 level with an eye on the approaching FOMC meeting and FED decision on 26th.

India’s forex reserves swelled by USD 12.743 billion to USD 609.022 billion in the week ended July 14, the Reserve Bank of India said on Friday.

In the domestic equity market, the 30-share BSE Sensex declined 87.24 points or 0.13 to 66,597.02. The broader NSE Nifty was down 10.65 points or 0.05 per cent to 19,734.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs 1,998.77 crore, according to exchange data.