Mumbai- The rupee pared initial gains to settle nearly flat at 74.46 against the US dollar on Monday amid a muted trend in the domestic equity market.
However, lower crude prices in the international market supported the rupee, forex dealers said.
At the interbank forex market, the local unit opened at 74.38 against the greenback and witnessed an intra-day high of 74.31 and a low of 74.50.
It finally ended at 74.46 against the American currency, registering a fall of just 1 paisa over its previous close.
On Friday, the rupee had finished at 74.45 against the American currency.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.06 to 95.06.
On the domestic equity market front, the BSE Sensex ended 32.02 points or 0.05 per cent higher at 60,718.71, while the broader NSE Nifty inched 6.70 points or 0.04 per cent higher at 18,109.45.
“This is going to be a truncated week and bias remains of range-bound trading. We expect a range of 74.20 and 74.75 on spot,” Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities, said.
The USD/INR spot closed at 74.46 in a day of lacklustre trading, Banerjee added.
Meanwhile, the wholesale price-based inflation spiked to a 5-month high of 12.54 per cent in October, mainly due to a rise in prices of manufactured products and crude petroleum.
“Rupee opened on a flat note but fell in the latter half of the session following an uptick in inflation,” said Gaurang Somaiyaa, Forex &
Bullion Analyst, Motilal Oswal Financial Services.
Retail inflation after remaining on a downtrend for four months moved a tad up in October to 4.48 per cent due to an uptick in food prices and higher cost of motor fuel.
“Today, volatility for the dollar could remain low as no major economic data is expected to be released from the US. We expect the USD/INR (Spot) to trade sideways and quote in the range of 74.05 and 74.70,” Somaiyaa said.
Brent crude futures, the global oil benchmark, fell 1.30 per cent to USD 81.10 per barrel.
“Rupee traded in a range of 74.40-74.52 with dollar index and Crude prices staying sideways on the first of the new week. Rupee can face some pressure once 74.55 breaks convincingly, as 74.80 is the next hurdle for the rupee.
Crude prices soften shall help the rupee to not fall majorly. Hence rupee can be seen in a range of 74.30-74.80,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.
Foreign institutional investors were net buyers in the capital market, as they purchased shares worth Rs 511.10 crore on Friday, according to exchange data. (PTI)
