Rupee trades in narrow range against US dollar in early trade

Indian rupee was trading in a narrow range in morning trade on Thursday tracking the subdued domestic equities and a firm American dollar amid concerns over the impact of the new COVID variant on the economy.

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At the interbank foreign exchange, the rupee opened at 75.45 against the dollar. It pared the initial gains and touched a low of 75.53 in initial deals.

On Wednesday, the Indian rupee fell to a near two-month low of 75.50 against the US dollar, as RBI's bi-monthly monetary policy decision failed to enthuse forex market participants.

The Reserve Bank of India on Wednesday kept borrowing costs at a record-low for the ninth consecutive time, as it decided to continue supporting economic growth amid uncertainty over the impact of the Omicron strain on the economy.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 per cent higher at 95.97.

Besides, unabated foreign fund outflows weighed on investor sentiments, traders said.

Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 579.27 crore, as per exchange data.

Global oil benchmark Brent crude futures advanced 0.57 per cent to USD 76.25 per barrel.

On the domestic equity market front, BSE Sensex was trading 191.4 points or 0.33 per cent lower at 58,458.28, while the broader NSE Nifty declined 63.65 points or 0.36 per cent to 17,406.10.