The Aryavarth Express
Agency (New Delhi): The rupee settled on a flat note at 83.51 (provisional) against the US dollar on Wednesday. This balance was due to support from easing crude oil prices being offset by strong dollar demand.
Forex traders noted that a muted trend in domestic equities and significant foreign fund outflows impacted investor sentiment. At the interbank foreign exchange market, the rupee traded within a narrow range, opening at 83.50, reaching an intraday high of 83.49, and a low of 83.52, before finally settling at 83.51, unchanged from its previous close on Tuesday.
Anuj Choudhary, a Research Analyst at Sharekhan by BNP Paribas, stated, “The Indian rupee traded flat to negative on weak domestic markets and a strong US dollar. FII outflows also weighed on the rupee. However, a decline in crude oil prices cushioned the downside.” Choudhary added that the rupee might trade with a slight negative bias amid the greenback’s strength and ongoing foreign investor selling. Positive global equities could support riskier currencies, while weak crude oil prices might help the rupee at lower levels. He predicted the USD-INR spot price to range between Rs 83.30 and Rs 83.75.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, stood at 105.53, up by 0.12 percent, buoyed by hawkish Fedspeak and geopolitical tensions in the Middle East. Brent crude futures, the global oil benchmark, fell by 1.37 percent to USD 82.02 per barrel.
In the domestic equity market, the 30-share BSE Sensex dropped by 45.46 points, or 0.06 percent, to close at 73,466.39 points, while the broader NSE Nifty settled flat at 22,302.50 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, offloading shares worth Rs 3,668.84 crore, according to exchange data.
These factors collectively contributed to the rupee’s flat performance against the US dollar, highlighting the intricate interplay between global and domestic economic forces.
