Mumbai, Apr 10 (PTI) The rupee closed flat at 83.31 against the US dollar on Wednesday, as support from a rally in domestic equities was negated by elevated crude prices in the international market and firm US bond yields.
At the interbank foreign exchange market, the local unit opened at 83.23 against the greenback. The unit hit an intraday high of 83.15 and a low of 83.31.
The domestic unit finally settled flat at 83.31.
On Monday, the rupee closed at 83.31 against the dollar.
Forex and money markets were closed on Tuesday on account of ‘Gudhipadwa’.
“Inflows on account of the front running of FPO of Vodafone Idea, which is happening in next week, was the reason for selling the US dollar, while government debt repayment was the reason for buying the US dollar today..,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent lower at 104.05.
Brent crude futures, the global oil benchmark, rose 0.31 per cent to USD 89.70 per barrel.
On the domestic equity market front, the Sensex climbed 354.45 points to settle above the 75,000 mark for first time, and the Nifty jumped 111.05 points to record 22,753.80.
The US treasury bond yields climbed after US data showed consumer inflation higher than expected in March.
“We expect the rupee to trade with a slight positive bias on positive tone in the domestic markets and some softness in the US Dollar. The easing of crude oil prices from higher levels may also support the domestic currency.
“However, any re-escalation of tensions in the Middle East may cap the upside. Traders may remain cautious ahead of inflation data and FOMC meeting minutes from the US. A hot inflation data may lead to a bounce back in the US dollar while softening of inflation may ease the greenback further,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 2,778.17 crore, according to exchange data. PTI DRR DRR BAL BAL
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