Rupee Wobbles Amid Trade War Fears, US Inflation Data Looms
Forex traders said the rupee is trading in a tight range as a late decline in domestic markets and foreign fund outflows capped sharp gains for the domestic unit.
The rupee consolidated in a narrow range to settle just 3 paise higher at 87.72 (provisional) against the US dollar on Tuesday amid a negative trend in domestic equities.
Forex traders said the rupee is trading in a tight range as a late decline in domestic markets and foreign fund outflows capped sharp gains for the domestic unit.
Moreover, there is an overall negative bias amid uncertainties over the trade tariff issue between India and the US.
At the interbank foreign exchange, the domestic unit opened at 87.70 and moved in a range of 87.59-87.72 during the day before settling at 87.72 (provisional), just 3 paise higher than its previous close.
On Monday, the domestic unit closed at 87.75 against the US dollar.
Investors are in a wait-and-watch mode ahead of the US CPI inflation data and are also awaiting cues from the US-Russia talks on August 15, traders said.
Also Read : New Income Tax Bill: Late Filers Can Now Claim TDS Refunds, But Must Still Submit Returns
"We expect the rupee to trade with a negative bias on account of the ongoing trade tariff war between India and the US. Sustained FII outflows may also pressurise the rupee.
"However, weakness in the US Dollar and declining crude oil prices may support the rupee at lower levels. Investors now focus on the US and Indian inflation data this week. USD/INR spot price is expected to trade in a range of 87.40 to 87," said Anuj Chaudhary, Research Analyst Commodities and Currencies, Mirae Asset Sharekhan.
Meanwhile, Brent crude prices rose 0.41 per cent to USD 66.70 per barrel in futures trade.
The dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.04 per cent to 98.55.
On the domestic equity market front, Sensex dropped 368.49 points to settle at 80,235.59, while Nifty declined 97.65 points to close at 24,487.40.
Foreign Institutional Investors offloaded equities worth Rs 1,202.65 crore on Monday, according to exchange data.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
Top Headlines
