The rupee recovered from its record closing low levels and appreciated 2 paise to 83.32 against the US dollar in morning trade on Tuesday, tracking the weakness of the American currency in the overseas market and positive domestic equities. The local unit opened 1 paise higher at 83.33 a dollar as compared to its previous close of 83.34.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21% lower at 103.21.
On Monday, the rupee ended 7 paise lower at 83.34, matching its record closing low, amid sustained dollar demand.
“Investors will focus on the existing home sales data from the US and weaker-than-expected numbers could keep the dollar weighed down. We expect the USDINR (Spot) to trade sideways and quote in the range of 83.05 and 83.40,” said Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial.
Rupee has failed to benefit from the broad weakness in the dollar and drop in US treasury yields.
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“Dollar index continues its fall as it moves down to 103.30 with the US 10-year bond at 4.4060 per cent. Market awaits for the FOMC meeting minutes which could give an idea of Fed’s stance on interest rates,” Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said.
Brent crude futures, the global oil benchmark, was trading 0.40% lower at $81.99 per barrel.
In the domestic equity market, the BSE Sensex gained 250.11 points, or 0.38%, to 65,905.26 points, while the NSE Nifty was up 85.35 points, or 0.43%, to 19,779.35 points.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹645.72 crore.
(With inputs from PTI)
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