Rupee Rises 1 Paisa Against US Dollar - News

Mumbai, Jan 18 (PTI) The rupee inched up 1 paisa to settle at 83.13 against the US dollar on Thursday, tracking a weak American currency against major rivals overseas.

A weak trend in domestic equity markets and rising crude oil prices kept the movement of the domestic currency restricted, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 83.16 and traded in the range of 83.10 to 83.18 against the greenback. The unit finally settled at 83.13 against the dollar, registering a gain of 1 paisa over its previous close.

On Wednesday, the rupee settled 2 paise lower at 83.14 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.15 per cent lower at 103.05 on Thursday.

Analysts said the dollar retreated after the US data released on Wednesday showed increased retail sales in the country, reflecting sustained economic growth and dashing the financial market's hope of an interest rate cut by the Federal Reserve.

"US dollar softened today on positive global markets. US retail sales and industrial production data topped forecasts, which trimmed rate cut expectations by the Fed in March 2024," said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

He said the rupee is expected "to trade with a slight negative bias on weak domestic markets due to an extended sell-off and a rise in crude oil prices due to the escalation of tensions in the Middle East".

"USD-INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50," Choudhary added.

Brent crude futures, the global oil benchmark, went up 0.56 per cent to USD 78.32 per barrel.

On the domestic equity market front, Sensex fell 313.90 points, or 0.44 per cent, to settle at 71,186.86 points. The Nifty also declined 109.70 points, or 0.51 per cent, to 21,462.25 points.

Foreign Institutional Investors (FIIs) were net sellers in the equity market on Thursday as they sold shares worth Rs 9,901.56 crore, according to exchange data.

"The range-bound session persisted after the last two days of weakness in the rupee from the 82.80 zones, where it faced resistance. The recent appreciation of the dollar kept pressure on the rupee, which continues to encounter resistance in the 82.80-82.90 zones. Broadly, the prices remain within the range of 82.80-83.30," Jateen Trivedi, VP Research Analyst, LKP Securities, said.