Image used for representational purpose only.
| Photo Credit: PTI

The rupee consolidated in a narrow range and settled 5 paise higher at 83.06 (provisional) against the U.S. dollar on September 21 as crude oil price receded from its elevated level.

The rupee was also weighed down by a rising dollar index, following hawkish comments from U.S. Federal Reserve officials, forex traders said.

Moreover, investors remained cautious ahead of the Bank of England and Bank of Japan policy decisions, they added.

At the interbank foreign exchange market, the rupee opened at 83.16 against the U.S. dollar and settled at 83.06 (provisional), registering a rise of 5 paise from its previous close.

During the session, the domestic unit witnessed an intra-day high of 83.02 and a low of 83.17.

In the previous session, the rupee staged a sharp rebound from its lifetime low levels and surged by 21 paise to close at 83.11 against the U.S. dollar.

“Indian rupee headed south after a flat opening amid a hawkish signal from FOMC, which dragged the global risk-assets lower,” said Dilip Parmar, Research Analyst, HDFC Securities.

However, the rupee managed to end the session with minor losses supported by the retracement in the crude oil prices and probable central bank interventions, Mr. Parmar added.

Market participants are in a wait-and-watch mode ahead of the Bank of England and Bank of Japan policy decision, he said.

“The dollar is expected to bode well amid policy divergence and a better U.S. macro environment compared to other developing nations,” he said.

The trend for $/₹remains bullish, following broad-based strength in the greenback. The pair has resistance at 83.30 and support at 82.90, he added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18% to 105.51.

Brent crude futures, the global oil benchmark, fell 1.05% to $92.55 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 570.60 points or 0.85% lower at 66,230.24. The broader NSE Nifty declined 159.05 points or 0.8% to 19,742.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹3,110.69 crore, according to exchange data.

Image used for representational purpose only.
| Photo Credit: Reuters

The rupee continued its upward trend for the second straight session and appreciated by 9 paise to 82.93 against the U.S. dollar in early trade on Septmber 11, tracking positive cues from domestic equity markets and a weak American currency against major overseas rivals.

However, firm crude oil prices hovering above $ 90 per barrel and outflow of foreign funds weighed on the Indian currency, forex traders said.

At the interbank foreign exchange, the domestic unit opened 9 paise higher at 82.93 and traded in a narrow range of 82.90 to 82.96 against the greenback.

Also read | Rupee snaps 4-day losing streak, gains 21 paise against U.S. Dollar

On Friday, the rupee closed at 83.02 against the U.S. dollar.

Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services, said this week the domestic inflation number will be important to watch and could trigger volatility for the currency.

“Today, volatility for major crosses including the rupee could remain low as no major economic data is expected to release. We expect the USDINR (Spot) to trade sideways with a positive bias and quote in the range of 82.80 and 83.40,” Mr. Somaiya added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.35% to 104.72.

Brent crude futures, the global oil benchmark, was trading 0.24% lower at $90.43 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 201.56 points or 0.30 % higher at 66,800.47. The broader NSE Nifty advanced 69.45 points or 0.35% to 19,889.40.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹224.22 crore, according to exchange data.