The Indian rupee settled just 1 paisa lower at 74.44 (provisional) against the US dollar on Wednesday amid a muted trend in the domestic equity market.
At the interbank forex market, the local unit opened at 74.43 against the greenback and witnessed an intra-day high of 74.37 and a low of 74.48. It finally ended at 74.44 against the American currency, registering a fall of just 1 paisa over its previous close.
On Tuesday, the rupee had settled at 74.43 against the US dollar. Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd said, "The rupee continued to languish in a narrow range as positive cues from strong US Dollar Index is offset by FPI flows in primary market and soft oil prices. Spot rupee closed flat near 74.44 levels. All eyes will be on US CPI inflation data being released tonight. A softer print can exert downward pressure on USD-INR on Thursday. However, RBI remains an aggressive buyer and hence USD-INR will remain supported at lower levels. We are looking for USD-INR to trade within a range of 74.25 to 74.65 levels on spot."
The Indian rupee settled flat on the back of the lacklustre movement, taking cues from other Asian currencies. Spot USD/INR is expected to trade in the range of 74.10 to 74.60, said Dilip Parmar, Research Analyst, HDFC Securities, PTI said.
On the overseas front, the softness seen in the Euro has helped to lift the greenback towards the 4-month highs printed in late July, heads for fourth straight gains against a basket of peers, Parmar added.
Looking ahead, the eagerly-anticipated US CPI report highlights Wednesday's calendar, which is otherwise quiet, he further noted.
On the domestic equity market front, the BSE Sensex ended 28.73 points or 0.05 per cent lower at 54,525.93, while the broader NSE Nifty inched 2.15 points or 0.01 per cent higher at 16,282.25.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.11 per cent to 93.16. Brent crude futures, the global oil benchmark, rose 0.30 per cent to USD 70.84 per barrel. Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 178.51 crore, as per exchange data.
(With PTI inputs)
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