Mumbai, February 16: The Indian rupee ended Monday’s session unchanged at 90.66 against the US dollar, as gains in domestic equities were counterbalanced by strength in the overseas dollar market and continued foreign fund outflows.
Rupee Trades in Narrow Range, Ends at Previous Close
In the interbank foreign exchange market, the rupee opened at 90.63 against the greenback. During the day, it moved within a tight band, touching an intraday high of 90.61 and a low of 90.72.The domestic currency finally settled at 90.66 on a provisional basis, matching its previous closing level. On Friday, the rupee had depreciated by 5 paise to close at the same level against the US dollar.
Forex traders noted that lower crude oil prices offered support to the local unit, while foreign institutional investor outflows restricted further appreciation.
Dollar Index Firms, Brent Crude Eases
The dollar index, which measures the US dollar’s strength against a basket of six currencies, was trading 0.09 per cent higher at 96.91.Meanwhile, Brent crude, the global oil benchmark, declined 0.47 per cent to trade at USD 67.43 per barrel in futures trade, providing some relief to the rupee.
Strong Equity Rally Supports Sentiment
Domestic equity markets closed sharply higher, lending support to the currency.The BSE Sensex surged 650.39 points, or 0.79 per cent, to settle at 83,277.15. The NSE Nifty advanced 211.65 points, or 0.83 per cent, to close at 25,682.75.
Despite the equity rally, foreign institutional investors remained net sellers. On Friday, FIIs offloaded equities worth Rs 7,395.41 crore, according to exchange data.
Range-Bound Trend Continues
Market participants indicated that the rupee continues to trade within a defined range, with resistance seen near 90.25 and support around 90.90. In the absence of a decisive breakout on either side, the currency is expected to remain in consolidation.Investors are now monitoring key US economic data, including housing market and GDP figures, which may influence near-term movement in the USD-INR pair.
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