Rupee trades in narrow range against US dollar in early trade

Forex traders said the rupee is trading in a narrow range as sustained foreign fund outflows and strength of the American currency in the overseas market weighed on investor sentiments.

Mumbai: The rupee was trading in a narrow range and appreciated 3 paise to 83.25 against the US dollar in early trade on Thursday, amid a negative trend in domestic equities.

Forex traders said the rupee is trading in a narrow range as sustained foreign fund outflows and strength of the American currency in the overseas market weighed on investor sentiments.

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At the interbank foreign exchange, the domestic unit opened at 83.26 against the dollar and then touched an early high of 83.25, registering a gain of 3 paise over its previous close.

On Wednesday, the rupee settled at 83.28 against the US dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04 per cent higher at 106.60.

Brent crude futures, the global oil benchmark, fell 0.55 per cent to USD 91 per barrel.

Forex traders said crude oil prices fell as markets await further development from the Israel-Hamas war, while focus remained on upcoming signals from the US Fed.

In the domestic equity market, the 30-share BSE Sensex was trading 435.23 points or 0.66 per cent lower at 65,441.79. The broader NSE Nifty declined 131.00 points or 0.67 per cent to 19,540.10.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth Rs 1,831.84 crore, according to exchange data.

“FPIs continued their relentless selling in stocks and this buying of dollars from oil companies who due to steep rise in oil prices have been on the US dollar buy side for the last one month keeping rupee in range as RBI sold dollars,” Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said.