Unabated FII outflows, sluggish mkts weigh on Re

Mumbai: The rupee stayed range-bound and settled one paisa higher at 83.29 against the US dollar on Thursday amid a negative trend in domestic equities and sustained foreign fund outflows. At the interbank foreign exchange, the rupee opened at 83.25 and finally settled at 83.29 against the greenback, registering a gain of one paisa from its previous close.

During the day, the rupee witnessed a range-bound trade reaching the peak of 83.25 and hitting the lowest level of 83.29 against the American currency. On Wednesday, the rupee closed at 83.30 against the American currency. The US Federal Reserve Chair Powell did not comment on the course of the Fed’s monetary policy in his Wednesday’s speech. On Thursday, he will participate in a panel discussion on monetary policy challenges.

“Markets will look for clues to the Fed’s monetary policy course,” Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said. “The pair is expected to continue to range trade between Rs82.80 and Rs83.50 in the near-term,” Singh said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.01 per cent at 105.58.