Mumbai: The Indian rupee is trading in a narrow range against the US dollar in early trade on Wednesday. As per market experts, investors remained cautious ahead of the interim budget that will be released on February 1. Sustained foreign fund outflows and strengthening of the US dollar also weighed on investor sentiments.
At the interbank foreign exchange, the Indian rupee opened at 83.11 against the US dollar and then touched a high of 83.10, and a low of 83.12. On Tuesday, the Indian rupee appreciated 6 paise to settle at 83.10 against the US dollar.
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‘Rupee traded in a narrow range and market participants remained cautious ahead of the interim budget that will be released on Thursday. Dollar index remained firm against its major crosses ahead of the two-day FOMC meeting starting tonight. Fed is broadly expected to hold rates steady once more but markets will be paying close attention to Jerome Powell’s comments, important to gauge for the dollar,’ said Gaurang Somaiya, forex and bullion analyst Motilal Oswal Financial services.
The dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.21 per cent higher at 103.61. Foreign Institutional Investors (FIIs) were net sellers in the Indian capital markets on Tuesday as they offloaded shares worth Rs 1,970.52 crore.
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