Rupee rises 8 paise against US dollar

The rupee appreciated by 8 paise to close at 82.01 against the US dollar on Wednesday as a positive trend in domestic equities and easing crude oil prices supported investor sentiments.

However, a strong dollar against major rivals overseas capped the rupee's gain, forex traders said.

At the interbank foreign exchange, the domestic unit opened weak at 82.13 and touched the intra-day peak of 81.99.

The domestic unit finally settled at 82.01 against the US dollar, registering a gain of 8 paise over the previous close.

On Tuesday, the rupee settled at 82.09 against the dollar.

''The market witnessed range-bound trading, with selling pressure observed in USD/INR due to positive participation in the capital market and profit booking in the dollar index, which approached the 102.50 level,'' according to Jateen Trivedi, VP Research Analyst at LKP Securities. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was up 0.10 per cent at 102.64.

Crude oil price benchmark Brent crude was down 0.09 per cent to USD 75.83 per barrel.

In the domestic equity market, the 30-share BSE Sensex climbed 195.45 points, or 0.31 per cent to settle at a fresh peak of 63,523.15, and the broader Nifty advanced 40.15 points, or 0.21 per cent to end at a record 18,856.85.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 4,013.10 crore, according to exchange data. He expects more volatility in the rupee after US Federal Reserve Chair Jerome Powell's speech ahead of the Fed's decision on interest rates.

''Market participants are eagerly awaiting Powell's speech later in the evening, as it is expected to provide insights into the interest rate outlook. This may lead to increased volatility in the dollar index over the next few days, and the reaction of the rupee will be closely watched. A volatile range between 81.75 and 82.15 is anticipated for the rupee,'' Trivedi added.