On March 12, the Rupee consolidated in a narrow range and settled for the day five paise lower at 82.80 against the U.S. dollar.
| Photo Credit: The Hindu
The Rupee depreciated five paise to 82.85 against the U.S. dollar in early trade on March 13, as the strength of the American currency in the international market and elevated crude oil prices dented investors’ sentiment.
Forex traders said the Rupee is expected to trade with a slight negative bias on recovery in the greenback and concerns over elevated crude oil prices. However, a positive tone in domestic markets may support the Rupee at lower levels.
At the interbank foreign exchange, the Rupee opened at 82.82 against the dollar and touched an early low of 82.85 against the greenback. On Tuesday, the Rupee consolidated in a narrow range and settled for the day five paise lower at 82.80 against the U.S. dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 102.88, lower 0.07%.
“The U.S. dollar held steady as traders weighed hotter-than-expected the U.S. CPI inflation which came at 3.2% against last month’s figures of 3.1%,” traders said. Brent crude futures, the global oil benchmark, rose 0.56% to $82.38 per barrel.
On the domestic equity market front, Sensex advanced 39.69 points or 0.05% to 73,707.65 points. The Nifty fell 10.10 points or 0.05% to 22,325.60 points.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Tuesday as they bought shares worth ₹73.12 crore, according to exchange data.
On the macroeconomic front, India’s industrial production growth slowed to 3.8% in January, while the February retail inflation at 5.09% remained within the Reserve Bank’s comfort zone for the sixth straight month, according to the latest government data.