Rupee edges up by 1 paisa to close at 82.96 against US dollar

Rupee edges up: The rupee consolidated in a narrow range and appreciated by 1 paisa to close at 82.96 (provisional) against the US dollar on Wednesday. This slight gain came despite pressure from a weak trend in domestic equities, offsetting support from easing crude oil prices.

Forex traders noted that the strength of the American currency in the overseas market and sustained foreign fund outflows weighed on the local unit. At the interbank foreign exchange, the rupee opened at 82.90 against the greenback, touching an intra-day high of 82.86 and a low of 82.97.

Global worries loom 

"The rupee erased opening gains along with domestic equities amid global worries," said Dilip Parmar, Research Analyst at HDFC Securities, highlighting the broader trend. He added that the dollar-rupee pair is expected to trade between 82.80 and 83.20 in the near term.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.06 per cent higher at 104.14. Brent crude futures, the global oil benchmark, fell 0.27 per cent to $82.12 per barrel.

In the domestic equity market, the Sensex declined by 434.31 points, or 0.59 per cent, to 72,623.09 points, while the Nifty fell by 141.90 points, or 0.64 per cent, to 22,055.05 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, offloading shares worth Rs 1,335.51 crore, according to exchange data.

(with Reuters inputs)