Brent crude futures, the global oil benchmark, advanced 0.81 per cent to USD 82.88 per barrel.
Published Date – 12 March 2024, 08:49 PM
Brent crude futures, the global oil benchmark, advanced 0.81 per cent to USD 82.88 per barrel.
Mumbai: The rupee consolidated in a narrow range and settled for the day 5 paise lower at 82.80 against the US dollar on Tuesday, as market participants remained on the sidelines ahead of the release of key macroeconomic data.
Forex traders said the Indian rupee declined marginally on positive US dollar and recovery in crude oil prices. However, positive domestic markets and sustained foreign fund inflows over the past three sessions supported the local unit at lower levels.
At the interbank foreign exchange market, the local unit opened at 82.74 and touched the intra-day low of 82.80 and a high of 82.72 against the greenback.
The local unit finally settled at 82.80 against the dollar, registering a loss of 5 paise from its previous close. On Monday, the rupee declined by 8 paise to settle at 82.75 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01 per cent lower at 102.85, ahead of inflation data from the US.
Brent crude futures, the global oil benchmark, advanced 0.81 per cent to USD 82.88 per barrel.
“We expect the rupee to trade with a slight negative bias on recovery in the greenback and concerns over elevated crude oil prices. However, a positive tone in domestic markets may support the rupee at lower levels. Market participants may remain cautious ahead of inflation and budget deficit data from the US. USD-INR spot price is expected to trade in a range of Rs 82.50 to Rs 83,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.
Dilip Parmar, Research Analyst, HDFC Securities, said the foreign fund inflows in the domestic equities and debt market have supported gains in the rupee.
“The flow is expected to remain favourable for the rupee bulls but the risk-averse sentiments, volatile commodity prices and financial year-end adjustment will hinder the direction. Technically, spot USD-INR is expected to consolidate between 82.52 to 83.05 with negative bias,” he added.
On the domestic equity market front, Sensex jumped 165.32 points, or 0.22 per cent, to settle at 73,667.96 points.
The Nifty rose 3.05 points, or 0.01 per cent, to close at 22,335.70 points.
The government data released on Tuesday showed India’s industrial production growth slowed to 3.8 per cent in January, while the February retail inflation at 5.09 per cent remained within the Reserve Bank’s comfort zone for the sixth straight month.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Tuesday as they bought shares worth Rs 73.12 crore, according to exchange data
