Rupee ends almost flat at 89.23/$

Mumbai: The rupee slipped 1 paisa to close at 89.23 (provisional) against the US dollar in a range-bound trade on Wednesday, as firm domestic equities and a slide in global crude prices offset the impact of a strengthening greenback.

Foreign fund outflows and concerns over geopolitical developments sapped risk appetite in the market, pushing investors towards safe-haven assets, forex traders said. At the interbank foreign exchange market, the rupee opened at 89.24 and moved in a close range of 89.17-89.28 against the dollar.

The unit finally settled at 89.23, registering a loss of 1 paisa from its previous closing level. Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, said the rupee is expected to trade with a slight positive bias on rising odds of an interest rate cut by the US Federal Reserve in December and a rise in risk appetite in global markets.

“However, importer demand for dollars may cap sharp upside. USD-INR spot price is expected to trade in a range of Rs 89 to Rs 89.50,” he added. On Tuesday, the rupee settled 6 paise lower at 89.22 against the greenback.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.12 per cent to 99.70. Brent crude, the global oil benchmark, fell 0.13 per cent to USD 62.40 per barrel in futures trade.