Rupee gains 6 paise to close at 82.00 against U.S. dollar

The rupee consolidated in a narrow range and settled for the day higher by 6 paise at 82.00 (provisional) against the U.S. dollar on Wednesday, as investors remained on the sidelines ahead of the crucial U.S. inflation data.

Forex traders said significant foreign fund inflows, a firm trend in domestic equities and easing crude oil prices also supported the local unit.

At the interbank foreign exchange market, the local unit opened at 82.06 against the U.S. currency and finally closed at 82.00 (provisional), registering a gain of 6 paise over its previous close.

During the session, the rupee touched a high of 81.96 and a low of 82.09 against the dollar.

On Tuesday, the rupee closed at 82.06 against the U.S. currency.

Traders said investors were cautious as they awaited inflation data from the U.S. expected later in the day.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.07% to 101.67.

Global oil benchmark Brent crude futures fell 1.39% to $76.36 per barrel.

“The Indian rupee recovered after Tuesday’s sell-off as import commodity prices declined ahead of the crucial U.S. inflation data. The local unit opened flat versus the US dollar and consolidated between 82.09 to 81.96 with low volumes,” said Dilip Parmar, Research Analyst, HDFC Securities.

In the near-term, “we expect spot USDINR to consolidate in the range of 82.30 to 81.80,” Mr. Parmar added.

Meanwhile, India’s inflation data, due later in the week, will provide cues on the Reserve Bank of India’s next rate hike moves, traders said.

On the domestic equity market front, the 30-share BSE Sensex advanced 178.87 points or 0.29% to end at 61,940.20 points, and the broader NSE Nifty rose 49.15 points or 0.27% to 18,315.10 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they purchased shares worth ₹1,942.19 crore, according to exchange data.