Mumbai, Feb 15 (PTI) The rupee consolidated in a narrow range and depreciated by 3 paise to close at 83.05 against the US dollar on Thursday, tracking a strong American currency and elevated crude oil prices in the international market.
Forex traders said the Indian currency depreciated as foreign fund outflows weighed on the rupee. However, positive domestic markets cushioned the downside.
At the interbank foreign exchange market, the local unit opened at 83 and finally settled at 83.05 against the dollar, down by 3 paise from its previous close.
During the day, the rupee witnessed a range-bound movement. It saw an intra-day high of 82.99 and a low of 83.05 against the American currency.
On Wednesday, the rupee appreciated 6 paise to close at 83.02 against the US dollar.
“We expect the rupee to trade with a slight positive bias on the rise in risk appetite in global markets and a negative tone in the US dollar. The overnight decline in global crude oil prices and better than expected trade balance may further support the rupee,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.
However, concerns over FII outflows may cap a sharp upside.
“Any recovery in the US dollar may also weigh on the rupee at higher levels. Traders may take cues from retail sales, industrial production, the Empire State Manufacturing Index and weekly unemployment claims data from the US. USD-INR spot price is expected to trade in a range of Rs 82.80 to Rs 83.20,” Choudhary added.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.10 per cent down at 104.61.
“Most Asian peers were flat this Thursday as traders and investors refrained themselves from taking large positions ahead of key data tonight. Amongst other spot pairs, the EUR/INR and the JPY/INR rose, while the GBP/INR eased tracking the easing Sterling after data showed the British economy slipped into a recession.
“The Euro gained against the Dollar, while the Yen gained against the Dollar this late Thursday afternoon session,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
Brent crude futures, the global oil benchmark, were trading 0.40 per cent lower to USD 81.27 per barrel.
On the domestic equity market front, Sensex advanced 227.55 points, or 0.32 per cent, to settle at 72,050.38 points. The Nifty fell 70.70 points, or 0.32 per cent, to 21,910.75 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they sold shares worth Rs 3,064.15 crore, according to exchange data.
On the domestic macroeconomic front, the country’s exports increased 3.12 per cent on-year to USD 36.92 billion in January, according to the data released by the government on Thursday.
Imports rose by about 3 per cent year-on-year to USD 54.41 billion in January this year and trade deficit stood at USD 17.49 billion. PTI DRR HVA DRR BAL BAL
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