Rupee Vs Dollar: Domestic currency rises 1 paisa to close at 82.96 against American dollar

Currency Market Update: The rupee consolidated in a narrow range and settled at 82.96 (provisional) against the US dollar on Wednesday, February 21. As the support from easing crude oil prices was negated by a weak trend in domestic equities, the local currency registered a gain of 1 paisa for the day from its previous close. Throughout the session, the domestic currency oscillated within a range of 82.86 - 82.97.

The strength of the American currency in the overseas market and sustained foreign fund outflows weighed on the local unit, said PTI citing forex traders.

At the interbank foreign exchange, the rupee began the day at 82.90 against the dollar and fell to as low as 82.97 during the session before settling at at 82.96 (provisional) against the greenback for the day. The currency hit an intra-day high of 82.86.

"The Indian rupee erased opening gains along with the domestic equities amid global worries," Dilip Parmar, Research Analyst at HDFC Securities, said. He said that broadly, the USD-INR pair is expected to trade between 82.80 to 83.20 in the near-term.

Meanwhile, the dollar index — which measures the value of the American currency against six peers other than the rupee — was last seen trading 0.06 per cent higher at 104.14.

Global oil benchmark Brent crude futures fell 0.27 per cent to USD 82.12 per barrel at the last count.

Similarly, domestic equity benchmarks Sensex and Nifty declined by 0.59 per cent and 0.64 per cent. The 30-share benchmark BSE Sensex declined 434.31 points for the day to settle at 72,623.09 points, while the broader NSE Nifty fell 141.90 points to 22,055.05 points.

According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 1,335.51 crore.

With PTI Inputs