Mumbai, Feb 10: The rupee pared initial losses and settled on a positive note on Tuesday, higher by 9 paise at 90.57 (provisional) against the US dollar, supported by positive cues from domestic equities and weakening of the American currency in the overseas market.
Market factors at play
Forex traders said the rupee is witnessing sideways price action as the support from positive domestic equities and foreign fund inflows was negated by geopolitical tensions and dollar demand from importers.
Interbank trade details
At the interbank foreign exchange market, the rupee opened at 90.63 against the US dollar, then lost some ground to touch an intraday low of 90.77 and a high of 90.48 against the greenback.
At the end of Tuesday's trading session, the rupee was quoted at 90.57 (provisional), registering a gain of 9 paise over its previous close.
Previous session
On Monday, the rupee witnessed a volatile trading session and settled for the day on a slightly lower note, down 1 paisa at 90.66 against the US dollar.
Expert view
"We expect the rupee to trade with a slight positive bias on strength in the domestic markets and trade deal optimism. Weak dollar and fresh foreign inflows may further support the rupee.
"However, geopolitical tensions and dollar demand from importers may cap sharp upside. Traders may remain cautious ahead of the non-farm payrolls report on Wednesday. USDINR spot price is expected to trade in a range of 90.30 to 90.80," Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.
Global indicators
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.01 per cent higher at 96.82.
The dollar index has fallen below the 97 level amid ongoing weakness and shifting away from dollar assets. The Chinese regulators have urged banks to cut exposure on US Treasury exposure due to US policy risks.
Brent crude, the global oil benchmark, was trading 0.16 per cent lower at USD 68.93 per barrel in futures trade.
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Equity market and FII activity
On the domestic equity market front, Sensex climbed 208.17 points to settle at 84,273.92, while Nifty was up 67.85 points to 25,935.15.
On Monday, foreign institutional investors purchased equities worth Rs 2,254.64 crore, according to exchange data.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
