Rupee rises 1 paisa to close at 82.62 against U.S. dollar

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| Photo Credit: C. Venkatachalapathy

The rupee consolidated in a narrow range to settle just 1 paisa higher at 82.62 (provisional) against the U.S. dollar on June 6 amid a muted trend in domestic equities.

The rupee is trading in a narrow range as market participants are vigilant ahead of the RBI’s monetary policy later this week. The central bank is widely expected to leave the repo rate unchanged at 6.5%.

A strengthening greenback in the international markets also kept pressure on the domestic unit, Forex traders said. At the interbank foreign exchange market, the local unit opened at 82.56 against the U.S. dollar and settled at 82.62 (provisional), up 1 paisa over its previous close.

During the day, the domestic unit witnessed an intra-day high of 82.56 and a low of 82.66.

On Monday, the rupee closed at 82.63 against the U.S. currency.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.12% to 104.12.

Global oil benchmark Brent crude futures declined 1.60% to $75.48 per barrel.

Forex traders said the Reserve Bank’s rate-setting monetary policy panel began deliberations on Tuesday. Headed by Reserve Bank Governor Shaktikanta Das, the six-member Monetary Policy Committee (MPC) will meet for three days and the decision would be announced on Thursday.

On the domestic equity market front, the 30-share BSE Sensex advanced 5.41 points or 0.01% to end at 62,792.88 points, and the broader NSE Nifty rose 5.15 points or 0.03% to 18,599.00 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹700.98 crore, according to exchange data.