Rupee Trades In Narrow Range

Mumbai: The rupee consolidated in a narrow range and settled for the day down by 1paisa at 85.59 against the US dollar on Wednesday, on dollar demand from importers and foreign banks as well as surge in crude oil prices. Forex traders said market sentiment soured under pressure from rising US Treasury yields and persistent foreign fund outflows. However, positive domestic markets and a weak US dollar index cushioned the downside. At the interbank foreign exchange, the domestic unit opened at 85.65 and moved between an intra-day high of 85.53 and a low of 85.70 against the greenback.

The unit ended the session lower at 85.59, registering a fall of 1 paisa over its previous closing level. On Tuesday, the rupee depreciated 16 paise to close at 85.58 against the US dollar. “We expect the rupee to trade with a negative bias on importer demand for dollar and geopolitical tensions in the Middle East. Elevated crude oil prices may also weigh on the rupee,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.