Rupee rises 10 paise against US dollar

NewsDrum Desk
New Update

Mumbai, Nov 21 (PTI) The rupee recovered from its all-time low to settle 10 paise higher at 83.28 against the US dollar on Tuesday, tracking the weakness of the American currency in the overseas market and positive domestic equities.

Forex traders said the rupee traded in a narrow range as dollar demand from oil marketing companies and sustained foreign fund outflows weighed on investor sentiments.

At the interbank foreign exchange, the rupee opened at 83.33 and finally settled at 83.28 against the greenback, registering a gain of 10 paise from its previous close.

During the day, the rupee witnessed range-bound trade, reaching an intra-day high of 83.28 and hitting a low of 83.37 against the American currency.

On Monday, the rupee declined 12 paise to settle at its all-time low of 83.38 against the US dollar.

According to Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, the rupee gained on weak US dollar and positive Asian markets.

However, FII outflows capped sharp gains. The dollar declined and fell to a two-and-a-half-month low amid rising expectations of a no-rate hike by the US Federal Reserve in its upcoming Federal Open Market Committee (FOMC) meeting.

"Traders may take cues from existing home sales data from the US and FOMC minutes. The rupee may also take cues from volatility in crude oil prices. USD-INR spot price is expected to trade in a range of 83 to 83.70," Choudhary added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.06 per cent at 103.37.

Brent crude futures, the global oil benchmark, fell 0.79 per cent to USD 81.67 per barrel.

"...Dollar index weakness played a supportive role in preventing the rupee from falling below 83.40 in recent days. Over the last five sessions, the rupee has experienced a decline of around Rs 0.40 from its swing highs of 82.93.

"The volatility in crude prices and the trending of the dollar have contributed to the rupee's range-bound volatility. The upcoming US FOMC meeting minutes are expected to provide a key trigger for further directional cues. The rupee's range is anticipated to be between 83.20 and 83.45," Jateen Trivedi, VP Research Analyst at LKP Securities, said.

On the domestic equity market front, the BSE Sensex closed 275.62 points or 0.42 per cent higher at 65,930.77 points. The broader NSE Nifty advanced 89.40 points or 0.45 per cent to 19,783.40 points.

According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 455.59 crore. PTI DRR DRR BAL BAL BAL