Rupee settles flat in forex trade

Mumbai: The rupee consolidated in a narrow range and settled one paisa lower at 83.38 (provisional) against the US dollar on Tuesday, as investors preferred to remain cautious ahead of the domestic inflation data release and upcoming US Fed meeting.

Besides, selling pressure in the domestic equity markets dented market sentiments, forex traders said. However, a weaker American currency against major currencies overseas restricted the loss in the local currency, they added. At the interbank foreign exchange market, the local unit opened at 83.36 and settled at 83.38 (provisional) against the greenback, registering a loss of 1 paisa from its previous close. During intra-day, the rupee touched a high of 83.35 and hit the lowest level of 83.39.

On Monday, the domestic currency settled at 83.37 against the US dollar. Investors largely remained concerned over the domestic inflation data as well as industrial production numbers to be announced later in the day.

Currency traders were also awaiting the US Federal Reserve’s monetary policy decision likely to be announced later this week. “The upcoming focus is on the US CPI data in the evening, with expectations of 0.3 per cent on a month-on-month basis and a lower year-on-year figure at 3.1 per cent. Anticipating mixed reactions, the rupee seems unaffected, persisting within the broad range of 83.30-83.45,” said Jateen Trivedi, research Analyst at LKP Securities.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.28 per cent lower at 103.41 on Tuesday. Brent crude futures, the global oil benchmark, advanced 0.34 per cent to $76.29 per barrel.