MUMBAI, Oct 8: The rupee experienced a range-bound trading session on Wednesday, closing slightly higher at 88.75 against the US dollar, up by 2 paise, bolstered by foreign fund inflows.
Forex traders noted that while the US dollar maintains a steady position, underlying tensions exist.
The rupee faced headwinds due to a declining domestic equity market and heightened risk-off sentiments.
It is anticipated that the rupee will continue to trade within a narrow range, influenced by domestic factors such as IPO inflows and potential advancements in trade discussions between the US and India, which could gradually improve sentiment towards the rupee.
During the day, the rupee opened at 88.76, hit an intraday low of 88.81, and ultimately closed at 88.75 after gaining 2 paise from the previous day’s closing value of 88.77.
The dollar index, reflecting the US dollar’s strength against a selection of six currencies, was at 98.88, increasing by 0.31 percent.
Brent crude oil prices also saw an uptick, trading 1.25 percent higher at USD 66.27 per barrel. As per exchange data, foreign institutional investors purchased equities worth Rs 81.28 crore on a net basis on Tuesday.
On the equity market side, the Sensex fell by 153.09 points, ending at 81,773.66, while the Nifty dropped by 62.15 points to close at 25,046.15.
Concurrently, Commerce and Industry Minister Piyush Goyal stated that India and the US are actively engaged in discussions regarding a bilateral trade agreement, aiming to meet a November deadline for concluding negotiations. He mentioned the uncertainty of future talks due to the current US government shutdown, which raises questions about the timing and conditions under which subsequent discussions will be conducted. (PTI)
