Rupee trades in narrow range against U.S. dollar in early trade

The rupee traded in a narrow range on Tuesday (September 10, 2024) and depreciated 3 paise to 83.98 against the American currency. File
| Photo Credit: Reuters

The rupee traded in a narrow range on Tuesday (September 10, 2024) and depreciated 3 paise to 83.98 against the American currency, amid a muted trend in domestic equities.

Forex traders said foreign institutional inflows, alongside significant corrections in asset classes like the Dollar Index and crude oil prices, supported the rupee, while the Reserve Bank’s active intervention kept the rupee in a tight range.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.95 against the American currency and touched 83.98 in initial trade, registering a fall of 3 paise over its previous close.

On Monday, the rupee traded in a narrow range and closed flat at 83.95 against the American currency.

The U.S. dollar was steady in early trading on Tuesday, with yen inching lower to 143.37 as investors braced for the U.S. CPI inflation for further cues.

“Market would keep a close watch on the Reserve Bank of India (RBI) which may continue selling U.S. dollars to protect the rupee from crossing 84.00,” Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.08% to 101.63 points.

Brent crude, the international benchmark, was trading lower by 0.07% to $71.79 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 10.11 points, or 0.01%, to 81,569.65 points, while the Nifty was up 10.05 points, or 0.04%, to 24,946.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth ₹1,176.55 crore, according to exchange data.