Image used for representational purpose.
| Photo Credit: Vivek Prakash

The rupee opened 1 paisa higher at 83.67 against the U.S. currency on August 1 after the Federal Reserve held the rates, but said a September rate cut could be on the table.

The U.S. dollar declined marginally in overseas markets but Brent crude oil prices rose further, limiting gains for the domestic currency.

At the interbank currency exchange, the domestic currency opened at 83.67, 1 paisa higher than the previous day’s close.

Also read | Sensex rises 388 points, Nifty breaches record 25,000-mark

The domestic currency moved in a tight range of 83.67-83.69.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.13% to 103.96 points.

Brent crude — the global oil benchmark — rose 2.26% to $80.41 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex crossed the 82,000-mark for the first time, while Nifty touched a record high of 25,000.

Foreign institutional investors were net sellers in the capital markets on Wednesday and offloaded shares worth ₹3,462.36 crore, according to exchange data.

 At the interbank foreign exchange, the domestic unit opened at 83.24 against the dollar and then touched an early high of 83.22, registering a gain of 5 paise over its previous close. File
| Photo Credit: Reuters

The rupee appreciated by 5 paise to 83.22 against the US dollar in early trade on Tuesday supported by a positive trend in domestic equities.

Forex traders said the rupee is trading in a narrow range as sustained foreign fund outflows and strength of the American currency in the overseas market weighed on investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 83.24 against the dollar and then touched an early high of 83.22, registering a gain of 5 paise over its previous close.

On Monday, the rupee settled at 83.27 against the US dollar.

“This week, on the domestic front, no major economic data is expected to be released but on the global front, from US the dollar could react to Fed member’s speech and a couple of important economic data from the US,” said Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial.

Somaiya further noted that “we expect the USDINR(Spot) to trade sideways and quote in the range of 83.05 and 83.50.” The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent higher at 106.30.

Brent crude futures, the global oil benchmark, rose 0.02 per cent to $89.67 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 325.65 points or 0.49 per cent higher at 66,492.58. The broader NSE Nifty advanced 98.15 points or 0.5 per cent to 19,829.90.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they sold shares worth ₹593.66 crore, according to exchange data.

The rupee rose 4 paise to 83.24 against the US dollar in early trade on Tuesday, helped by positive equity market trends even as concerns remained over the conflict in the Middle East.

At the interbank foreign exchange, the rupee opened at 83.23 and stayed in the narrow range of 83.23 and 83.25 against the greenback. It later traded at 83.24 against the dollar, registering a rise of 4 paise over its previous close.

On Monday, the rupee slipped 1 paise to settle at 83.28 against the US dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 106.07.

In the domestic equity market, the 30-share BSE Sensex rose 309.97 points or 0.47 per cent to 65,822.36 points while the broader NSE Nifty advanced 94 points or 0.48 per cent to 19,606.35 points.

Brent crude futures, the global oil benchmark, fell 0.35 per cent to $87.84 per barrel.

While the rupee made marginal gains in early trade, Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial services, said, “we expect the USD-INR (Spot) to trade sideways and quote in the range of 83.05 and 83.40”.

The attack on Israel by Hamas has raised fears of a broader conflict in the Middle East.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹997.76 crore, according to exchange data.