Rupee gains 17 paise to end at 82.94 against the US dollar

The Indian rupee ended 17 paise higher against the US dollar on Tuesday as the greenback retreated from its high level. The local currency ended at 82.94 a dollar as compared to previous close of 83.11.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.16% to 103.13.

On Monday, the rupee ended at 83.11 a dollar.

“The Indian rupee appreciated on the weak US dollar and positive domestic markets. The decline in crude oil prices also supported the rupee, while selling pressure by foreign investors capped sharp gains,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

The US dollar declined on positive Asian and European markets and strong euro and pound.

“We do not see any sharp appreciation in the rupee as we expect the US dollar to recover amid the hawkish tone of the US Federal Reserve and continued selling pressure from FIIs,” Choudhary added.

Investors may remain cautious ahead of the BRICS summit and Fed Chair, Jerome Powell's speech at Jackson Hole Symposium this week. 

“USDINR spot price is expected to trade in a range of ₹82.70 to ₹83.30,” said Choudhary.

The US 10-year Treasury yields hit the highest since 2007 on bets that a resilient US economy will push the Federal Reserve to keep interest rates higher for longer.

Meanwhile, crude oil prices eased, which lent support to rupee.

Brent crude fell 0.40% to $84.12 a barrel and US West Texas Intermediate crude eased 0.05% to $80.68 a barrel.

On the domestic front, the Indian benchmark equity indices ended flat on Tuesday amid mixed global cues.

The Sensex closed 3.94 points, or 0.01%, higher at 65,220.03, while the Nifty settled at 19,396.45, up 2.85 points, or 0.01%.

On Monday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹1,901.10 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹626.25 crore, as per provisional data available on the exchanges.

(With inputs from PTI)

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