Rupee settles 2ps lower at 88.61/$

Mumbai: In a range-bound trade, the rupee settled 2paise lower at 88.61 (provisional) against the US dollar in line with negative sentiment in equity markets.

The emergence of foreign fund inflows, a weak greenback and lower crude oil prices helped the Indian currency resist downward pressure, traders said. At the interbank foreign exchange market, the rupee opened at 88.67 and moved in a tight range of 88.69 and 88.58 against the dollar.

The unit finally settled at 88.61 (provisional), down 2paise from its previous closing level. Investors were concerned about increasing import bills and the widening trade deficit of the country.

Traders were closely watching the progress on the proposed India-US trade deal as well as the domestic PMI data to be released later this week. On Monday, the rupee settled 7 paise higher at 88.59 against the US dollar.

The rupee gained support from weak crude oil prices and optimism over trade tariffs to restrict its slide against the US currency, according to traders. “Markets may remain volatile as the US government reopening would lead to economic data inflows.

The US non-farm payrolls report is expected to be released on Thursday,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent lower at 99.42.