Rupee inches up by 2 paise to 82.89 against dollar

Rupee inches up: In a range-bound trade on Monday, the rupee edged up by 2 paise to settle at 82.89 (provisional) against the US dollar, supported by inflows of foreign funds and softer crude oil prices. Forex traders noted that the dollar's retreat from higher levels also contributed to the rupee's modest gains.

Opening at 82.88, the currency saw a day of fluctuation, reaching an intra-day high of 82.86 and a low of 82.91 against the dollar. Friday saw the close 6 paise lower at 82.91.

Jateen Trivedi, VP Research Analyst, LKP Securities, stated, "The rupee gained by Rs 0.05, reaching 82.88 against the dollar. This increase was supported by the dollar index remaining low, hovering near $103.75. The pullback in the dollar index has contributed to the rupee's ability to stay above 83.00." 

Investors remained cautious ahead of key macroeconomic data releases, including inflation figures. The dollar index, which measures the greenback against a basket of six currencies, was marginally lower at 103.80.

"The upcoming week is anticipated to be data-heavy, with several major economic releases scheduled. These events will likely keep both the US dollar and the rupee busy as traders react to the incoming data. Rupee's broad range is expected to remain between 82.70 and 83.15, reflecting the ongoing volatility and uncertainty in the currency markets," Trivedi added. 

Meanwhile, Brent crude futures, the global oil benchmark, traded lower at $81.15 per barrel, further supporting the rupee.

On the domestic front, the Sensex fell by 352.67 points, or 0.48 per cent, settling at 72,790.13 points, while the Nifty dropped 90.65 points, or 0.41 per cent, to 22,122.05 points.

Foreign Institutional Investors (FIIs) were net buyers on Friday, purchasing shares worth Rs 1,276.09 crore, as per exchange data.

Additionally, forex reserves fell by $5.24 billion to $617.23 billion for the week ending February 9, according to the Reserve Bank of India (RBI).