Rupee Vs Dollar: The rupee traded in a narrow range and settled flat against the US dollar on Tuesday, February 13. As the support from a rally in domestic equities was negated by a strong greenback overseas and rising crude oil prices, the local currency settled at 83 for the day, similar to its previous close. Throughout the session, the domestic currency oscillated within a range of 82.98 - 83.02.

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At the interbank foreign exchange, the rupee began the day at 83.00 against the dollar and fell to as low as 83.02 during the session before settling at flat note against the greenback for the day. The currency hit an intra-day high of 82.98.

In December 2023, India experienced a deceleration in industrial production growth, which fell to 3.8 per cent. This decline was primarily attributed to poor performances in the mining and power generation sectors, according to official data released on Monday.

Furthermore, government data released on the same day indicated a drop in retail inflation to 5.1 per cent in January, marking a three-month low. This decrease was largely driven by reduced prices of essential commodities such as vegetables, fruits, and other food items.

"We expect the rupee to trade with a slight positive bias on positive Asian markets and fresh foreign inflows. However, positive tone in the greenback and rising crude oil prices may cap sharp gains," said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

Escalation of geopolitical tensions in the Middle East after Israel forces launched airstrikes in Rafah may also weigh on riskier currencies.

"Traders may take cues from US inflation data. US CPI is expected to cool down to 2.9 per cent from 3.4 per cent in the previous month, while core CPI is expected to cool down to 3.7 per cent from 3.9 per cent. USD/INR spot price is expected to trade in a range of Rs 82.80 to Rs 83.20," Choudhary said.

Meanwhile, the dollar index — which measures the value of the American currency against six peers other than the rupee — was last seen trading 0.05 per cent higher at 104.21, ahead of the US inflation report.

Global oil benchmark Brent crude futures inched up 0.85 per cent to USD 82.70 per barrel at the last count.

Similarly, domestic equity benchmarks Nifty and Sensex rose by 0.59 per cent and 0.68 per cent. The 30-share benchmark BSE Sensex increased 482.70 points for the day to settle at 71,555.19 points, while the broader NSE Nifty advanced 127.20 points to 21,743.25 points.

On Monday, February 12, the rupee appreciated 7 paise to close at 83 against the US dollar.

According to exchange data, foreign institutional investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 126.60 crore.

With PTI Inputs