The rupee pared initial gains and settled for the day lower by 11 paise to close at 82.02 (provisional) against the U.S. dollar on Tuesday amid bargain buying from oil importers and hedgers.
However, a positive tone in domestic markets, wherein benchmark indices witnessed record high levels and steady foreign fund inflows, supported the rupee at lower levels.
At the interbank foreign exchange, the domestic unit opened at 81.90 against the dollar and settled at 82.02 (provisional), down 11 paise from its previous close.
During the day, the rupee touched a high of 81.87 and a low of 82.03 against the greenback.
On Monday, the rupee had settled at 81.91 against the dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.01% to 102.99.
Brent crude futures, the global oil benchmark, advanced 1.22% to $75.56 per barrel.
"Rupee erased the early morning gains and became the worst performer among Asian currencies following bargain buying from the oil importers and hedgers. The speculative activities and inflows remained limited due to the closure of U.S. markets," Dilip Parmar, Research Analyst, HDFC Securities, said.
Spot USDINR has been oscillating around the 200-day simple moving average since June 16, lacking a directional movement, Parmar said, adding, "We believe the pair is expected to consolidate between 81.60 to 82.30 in the coming weeks." On the domestic equity market front, the 30-share BSE Sensex closed 274.00 points or 0.42% higher at a life-time high of 65,479.05 points. The broader NSE Nifty advanced 66.45 points or 0.34% to its all-time high of 19,389.00 points.
Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday as they purchased shares worth ₹1,995.92 crore, according to exchange data.
Published - July 04, 2023 06:09 pm IST
