The rupee on Wednesday closed nine paise higher at 74.28 (provisional) against the US dollar, despite a soft trend in domestic equity markets.
In the interbank forex market, the local unit opened on a weaker note at 74.51 against the greenback and later closed at 74.28, up 9 paise over its previous close of 74.37.
The local unit traded between 74.25 and 74.51 in the day’s trade.
According to Emkay Global Financial Services, there is no fresh trigger in the forex market and USDINR spot is stuck in a tight range of 74.20-74.55.
“It is a short week, with inflation playing a major deterrent to risk-taking. Therefore, the only focus remains on whether Fed members express their concerns on inflation, supporting the uptrend in DXY. But Overall, we expect spot trading to continue between 74-74.65,” it said.
Global oil benchmark Brent crude futures fell 0.87% to $81.71 a barrel.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% higher at 95.94.
Foreign institutional investors were net sellers in the capital markets on Tuesday as they sold shares worth Rs 560.67 crore, according to exchange data.
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