Mumbai: The Indian rupee traded in a narrow range in morning trade on Wednesday. As per forex trades, the support from positive domestic equities was negated by strengthening of the American currency in the overseas market. Forex traders said risk aversion in the global markets, escalation of geopolitical tensions in the Middle East and outflows by foreign investors further dented investor sentiments.
At the interbank foreign exchange market, the local currency opened at 83.86 but soon pared the gains to trade at 83.92, unchanged from its previous close. On Tuesday, the rupee recovered from its all-time low level and settled for the day 17 paise higher at 83.92 against the US dollar. The rupee had slumped 37 paise to settle at an all-time low of 84.09 against the US dollar on Monday.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, gained 0.28 per cent to 103.26 points. Foreign Institutional Investors (FIIs) were net sellers in the Indian capital markets on Tuesday as they offloaded shares worth Rs 3,531.24 crore.
Meanwhile, the Reserve Bank’s rate-setting panel started its three-day deliberations for the next set of bi-monthly monetary policy on Tuesday. The decision of the RBI Governor Shaktikanta Das-headed six-member Monetary Policy Committee (MPC) will be announced on Thursday.
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