Rupee trading in narrow range

Mumbai: Rupee appreciated 3paise to close at 83.56 against the US dollar on Wednesday, on positive domestic market, wherein benchmark sensitive index Nifty touched a fresh all-time high. Forex traders said rupee is trading in a narrow range as all eyes are on the US May CPI print and the US Federal Reserve’s rate decision on the global front and India’s Consumer Price Index (CPI) on the domestic front.

Moreover, the strength of the American currency in the overseas market and elevated crude oil prices weighed on the local unit and restricted the upmove. At the interbank foreign exchange market, the local unit opened at 83.56. During the trading session, the rupee touched an intraday high of 83.51 and a low of 83.56. It finally settled for the day at 83.56 against the greenback, registering an increase of 3paise from its previous closing level.

On Tuesday, the rupee settled for the day lower by 9 paise at 83.59 against the US dollar. The Indian rupee appreciated on positive domestic markets. Nifty touched a fresh all-time high. However, a positive US dollar and surge in crude oil prices capped sharp gains, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. “We expect the rupee to trade with a slight negative bias as US dollar is expected to strengthen amid expectations of a no change in Federal Open Market Committee (FOMC) meeting.”