Foreign fund outflows weighed on the South Asian currency
The Indian rupee was trading in a narrow range against the US dollar in the morning session on Tuesday amid a weak American currency and a muted trend in the Indian equities. Forex traders said foreign fund outflows also weighed on the South Asian currency.
At the Indian interbank foreign exchange, the rupee opened at 81.95 against the dollar (22.33 against the UAE dirham). It touched a high of 81.86 (22.30 against the dirham) in initial deals.
The rupee on Monday settled at 81.92 against the dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.33, down 0.02 per cent.
Global oil benchmark Brent crude futures declined 0.01 per cent to $82.72 per barrel.
On the Indian equity market front, BSE Sensex was trading 4.41 points or 0.01 per cent lower at 60,051.69 points while the broader NSE Nifty declined 2.40 points or 0.01 per cent to 17,741.00 points.
Foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth Rs4.12 billion, as per exchange data.
“Rupee will remain between the levels of 81.80 to 82.20 as RBI buys dollars at lower levels and inflows continue at higher levels to keep it well boxed in the small range for the moment,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.
(With inputs from PTI)
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