Mumbai, Jan 26 (PTI) The rupee declined by 8 paise to close at 82.04 against the US dollar on Monday amid geopolitical concerns and firming crude oil prices.
Volatility in equity markets and FII outflows also weighed on the market sentiment, analysts said.
After opening lower, the rupee staged a recovery to hit the day’s high of 81.94 in morning trade amid early gains in equities and a weaker greenback in the overseas markets.
However, the local currency retreated from early highs amid volatile stock markets and touched a low of 82.05 in afternoon trade at the interbank foreign exchange market.
The rupee finally settled at 82.04, showing a loss of 8 paise over the previous close of 81.96 against the US dollar.
“The rupee remained in a narrow and tight range between 81.95 and 82.05. The capital market also traded within a limited range, providing minimal signals or triggers for the rupee. Market participants are eagerly awaiting key data releases, building permits, and CPI and Non-Farm Payrolls data in the upcoming weeks, as these indicators are closely monitored by global central banks.
“Until there is further clarity on the data-specific approach, the rupee is expected to continue trading within the range of 81.75 to 82.25,” Jateen Trivedi, VP Research Analyst at LKP Securities, said.
Analysts said that geopolitical concerns after a short-lived armed rebellion in Russia eroded the appeal of riskier assets.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, eased 0.15 per cent to 102.75.
Crude oil price benchmark Brent crude was up 0.53 per cent at USD 74.24 per barrel.
In the domestic equity market, the 30-share BSE Sensex retreated from early highs to close almost flat at 62,970, showing a loss of 9.37 points. The broader Nifty advanced 25.70 points to close at 18,691.20.
Foreign Portfolio Investors (FPIs) were net sellers in the capital market on Monday as they offloaded shares worth Rs 409.43 crore, according to exchange data. PTI MR BAL BAL
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