Re in range bound trading
Edges up 1 paisa to 83.50/$; the USD-INR spot price is expected to trade in a range of Rs83.30-83.80
image for illustrative purpose
Mumbai: The rupee inched up 1 paisa to settle at 83.50 against the US dollar on Wednesday as the American currency retreated from its elevated level.However, sustained foreign fund outflows and a weak trend in domestic equities weighed on the local unit. With foreign investors buying US dollars and the Reserve Bank of India (RBI) selling the greenback, the USD/INR pair is expected to remain range-bound with a bit of a weakness bias, according to forex traders. At the interbank foreign exchange market, the local unit opened at 83.49. During the session, it traded in a narrow range of 83.51-83.47. The domestic unit finally settled at 83.50, higher by 1 paisa from its previous close.
The rupee gained on weakness in the US Dollar. However, weak domestic markets and FII selling capped sharp gains, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. “We expect the rupee to trade with a slight negative bias on the weak US Dollar and expectations that the US Dollar may rise again if inflation remains sticky and retail sales jumps,” Choudhary said, adding that FII outflows and a rise in crude oil prices may also weigh on the rupee.
“Traders may take cues from India’s trade balance data and CPI and retail sales data from the US. USD-INR spot price is expected to trade in a range of Rs83.30 to Rs83.80,” Choudhary said.
