Rupee gained 3 paise to 83.24 against the US dollar, owing to a favorable trend in domestic markets
Mumbai: The rupee maintained in a limited range on Tuesday, rising 3 paise to 83.24 (provisional) against the US dollar amid a favorable trend in local markets.
Read more: NSO: Consumer Price Index (CPI) measured at 5.02% for the month of September
According to forex traders, the rupee is trading with a modest positive bias due to favorable domestic markets. However, a strong US currency and fears about the Middle East war limited dramatic advances.
The local currency opened at 83.24 versus the US dollar on the interbank foreign exchange market and traded in a range of 83.22 to 83.26 during the day. The rupee eventually finished at 83.24 (provisional) paise higher than the previous close.
The rupee was trading at 83.27 against the US dollar on Monday. 'We anticipate that the rupee will trade with a modest positive bias as risk appetite rises in global markets and crude oil prices fall.
Diplomatic efforts to control the Middle East conflict may further help risk assets,' said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. However, a higher US dollar and any further escalation of geopolitical tensions between Hamas and Israel could limit significant gains.
'Selling pressure from FIIs and the maturing of dollar/rupee swap deals by the RBI may put additional pressure on the rupee. Traders may be influenced by retail sales and industrial output data from the United States.
The USD-INR spot price is projected to trade between Rs 82.90 and Rs 83.70,' Choudhary noted. Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, jumped 0.9% to 106.33.
Brent crude prices rose 0.41 percent to $90.02 a barrel, the global oil benchmark. The BSE Sensex closed 261.16 points, or 0.39 percent, higher at 66,428.09 on the domestic equity market.
The broader NSE Nifty rose 79.75 points, or 0.4%, to 19,811.50. According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Monday, selling shares worth Rs 593.66 crore.
OTT India updates you with the latest news, The Country’s no.1 digital news platform OTT India. Keeps you updated with national, and international news from all around the world. For more such updates, download the OTT India app on your Android and IOS device
.