Rupee vs Dollar: Domestic currency falls one paise to close at 83.38 against American dollar

Currency market update: The rupee (INR) traded in a narrow range on Tuesday, December 12, and settled at 83.38 (provisional) against the US dollar. As investors preferred to remain cautious ahead of the domestic inflation data release and upcoming US Fed meeting, the domestic currency depreciated by one paise for the day from its previous close. The local unit moved within a range of 83.35-83.39 throughout the session.

At the interbank foreign exchange, the rupee began the day at 83.36 against the dollar and fell to as low as 83.39 during the session before settling at 83.38 (provisional) against the greenback for the day.

"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 PTI citing Jateen Trivedi, VP Research Analyst at LKP Securities.

The dollar index — which measures the value of the American currency against six peers other than the rupee — was last seen trading 0.28 per cent lower at 103.41.

Global oil benchmark Brent crude futures advanced 0.34 per cent to USD 76.29 per barrel at the last count.

In contrast to this, domestic equity benchmarks Nifty50 and Sensex declined 0.43-0.54 per cent. The 30-share benchmark BSE Sensex plunged 377.50 points for the day to settle at 69,551.03 points while the Nifty50 fell 90.70 points to settle at 20,906.40 points.

On Monday, December 12, the rupee settled at 83.37 against the American dollar.

According to exchange data, foreign institutional investors (FIIs) were net buyers in the capital market on Monday as they bought shares worth Rs 1,261.13 crore.

With inputs from PTI