Rupee rises 9 paise to 82.95 against US dollar ahead of Budget

The rupee appreciated 9 paise to 82.95 against the US dollar in early trade on Thursday as market participants remained cautious ahead of the interim Budget.

Forex traders said the rupee was trading in a narrow range as the strength of the American currency in the overseas market and a muted trend in domestic equities weighed on investor sentiments.

At the interbank foreign exchange, the rupee opened at 83.02 against the dollar and then touched a high of 82.95, registering a gain of 9 paise over its previous close.

In initial trade, the rupee also touched a low of 83.03 against the American currency.

On Wednesday, the rupee appreciated 6 paise to 83.04 against the US dollar.

Forex traders said rupee traded in a narrow range and market participants remained cautious ahead of the interim Budget.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.24 per cent higher at 103.52.

Brent crude futures, the global oil benchmark, fell 1.40 per cent to USD 81.71 per barrel.

Indian rupee looks boxed between 83.00 to 83.20 narrowly as US Federal Reserve decided not to cut rates, Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said.

In the domestic equity market, the 30-share BSE Sensex was trading 55.16 points or 0.08 per cent higher at 71,807.27 points. The broader NSE Nifty advanced 19.05 points or 0.09 per cent to 21,744.75 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they purchased shares worth Rs1,660.72 crore, according to exchange data.

The Union government's fiscal deficit touched Rs 9.82 lakh crore or 55 per cent of the annual Budget target at the end of December 2023, as per the official data released on Wednesday.

In the corresponding period last year, the deficit was 59.8 per cent of the Budget estimate of 2022-23.