Rupee dips 1 paisa to settle at 90.96 against US dollar

The rupee stayed range-bound for the second consecutive day on Wednesday and settled 1 paisa lower at 90.96 (provisional) against the US dollar amid higher global crude oil prices and foreign fund outflows.A weaker greenback and positive sentiments in domestic equity markets prevented the rupee’s losses, according to forex traders.

At the interbank foreign exchange, the rupee opened at 90.94 against the greenback and traded in a narrow range through the session before settling at 90.96 (provisional), down 1 paisa from its previous close. On Tuesday, the rupee settled 6 paise lower at 90.95 against the US dollar.

“Rupee rose in early trades on a weak dollar and a positive start to the domestic markets. However, it gave up gains on elevated crude oil prices and geopolitical tensions,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.“We expect the rupee to trade with a negative bias amid geopolitical tensions between the US and Iran, as well as the ongoing trade tariff uncertainty. Negotiations between the US and Iran are likely to take place on Thursday, and markets now expect that the US may opt for a limited attack on Iran,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent down at 97.79. “A soft dollar, along with RBI intervention, may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of INR90.70 to INR91.20,” Choudhary said. Brent crude, the global oil benchmark, rose 0.06 per cent to $70.76 per barrel in futures trade. The domestic equity markets rebounded on Wednesday with Sensex climbing 50.15 points to settle at 82,276.07, while the Nifty was up 57.85 points to 25,482.50.On Tuesday, foreign institutional investors offloaded equities worth INR102.53 crore, according to exchange data.