Mumbai, Aug 12 (PTI) The rupee consolidated in a narrow range and settled for the day lower by 2 paise at 83.97 against the American currency on Monday, as market participants remained on the sidelines ahead of the release of key domestic macroeconomic data.
Forex traders said the Indian rupee declined on a positive tone in the US dollar and a surge in crude oil prices.
At the interbank foreign exchange market, the local unit opened at 83.95 and touched an intraday low of 83.98 and finally settled at 83.97 against the American currency, lower by 2 paise from its previous close.
The local unit had slumped 37 paise to settle at an all-time low of 84.09 against the US dollar on August 5.
On Friday, the rupee settled for the day higher by 2 paise at 83.95 against US dollar.
“We expect the rupee to trade with a slight negative bias on strength in the US dollar and rising global crude oil prices. Selling pressure from foreign investors and geopolitical tensions in the Middle East may further pressurise the rupee,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
Forex traders said for the USD/INR pair 84.00 level is acting as a psychological resistance.
Moreover, investors may remain cautious ahead of US CPI, retail sales and consumer confidence data from the US this week. “USD-INR spot price is expected to trade in a range of Rs 83.75 to Rs 84.25,” Choudhary added.
Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said the rupee remained in a range of 3 paise as “RBI continued to protect 83.97 thus avoiding 84.00 for another day”. “Rupee is expected to remain in the broad range of 83.85 to 84.05 tomorrow also with a close watch on RBI.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent higher at 103.18.
Brent crude, the global oil benchmark, advanced 0.85 per cent to USD 80.34 per barrel.
On the domestic equity market front, Sensex declined 56.99 points, or 0.07 per cent, to 79,648.92 points. The Nifty fell 20.50 points, or 0.08 per cent, to 24,347.00 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 4,680.51 crore, according to exchange data.
According to official data released on Monday, India’s industrial production slowed to a five-month low of 4.2 per cent in June 2024, mainly due to poor performance of the manufacturing sector, though power and mining sectors continue to perform well.
The latest data released by the National Statistical Office on Monday showed retail inflation in the country declined to a five-year low of 3.54 per cent in July mainly on account of subdued prices of food items, and base effect, according to official data released on Monday.
Meanwhile, net direct tax collection grew 22.48 per cent to about Rs 6.93 lakh crore as of August 11 this fiscal, government data showed on Monday. PTI DRR HVA
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