Mumbai: The Indian rupee witnessed range-bound trade and against the US dollar in initial deals on Thursday. As per forex traders, the Indian currency is likely to trade in a narrow range during the day as strong dollar and a muted tone in the domestic equities weighed on the local currency. But, weakening crude oil prices and intervention by the Reserve Bank of India (RBI) may support the local currency.
At the interbank foreign exchange, the Indian rupee opened at 84.01 against the US dollar. In the initial trade, it touched 83.99, registering a rise of 3 paise over its previous close. On Wednesday, the rupee witnessed a range-bound trade and strengthened marginally by 2 paise to 84.02 against the US dollar.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading at 103.59. Foreign institutional investors (FIIs) were net sellers in the Indian capital markets on Wednesday, as they offloaded shares worth Rs 3,435.94 crore.
On the macroeconomic front, the India’s merchandise exports rose marginally by 0.5 per cent to $34.58 billion in September while the trade deficit narrowed to a five-month low at $20.78 billion. According to official data, imports increased by 1.6 per cent to $55.36 billion in September compared to $54.49 billion in the year-ago period.
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