Rupee and US dollar: Early on Tuesday, a strong trend in local equities helped the rupee strengthen by 5 paise to 83.22 against the US dollar. The local currency gained 5 paise from its prior close to reach an early high of 83.22 against the dollar. It started the day at 83.24 against the dollar.
The dollar index, which measures the value of the dollar against a basket of six different currencies, was up 0.06% at 106.30.
The rupee closed at 83.27 versus the US dollar on Monday.
The rupee is trading in a restricted range, according to forex traders, as prolonged foreign fund outflows and the strength of the US dollar in the offshore market weigh on investor mood.
According to Gaurang Somaiya, a forex and bullion analyst at Motilal Oswal Financial, “this week, on the domestic front, no major economic data is expected to be released but on the global front, from the US the dollar could react to Fed member’s speech.
As further clarification, Somaiya said, “We expect the USDINR(Spot) to trade sideways and quote in the range of 83.05 and 83.50.”
The benchmark for world oil, Brent crude futures, dropped 0.01% to $89.64 a barrel.
The benchmark equity indices traded higher domestically. At 66,434.34, the 30-share BSE Sensex was up 267.41 points, or 0.40 percent. The NSE Nifty index as a whole increased 83.95 points, or 0.43%, to 19,815.70.
According to preliminary data posted on the exchanges, foreign institutional investors (FIIs) net sold Indian shares worth $593.66 crore on Monday, while domestic institutional investors (DIIs) net bought shares worth $1,184.24 crore.
