On Tuesday, the rupee ticked higher by 23 paise to close at 71.57 per dollar.
The rupee on Wednesday settled nearly unchanged at 71.56 against dollar as participants preferred to wait for the Reserve Bank of India's interest rate decision for further cues, reported news agency Press Trust of India (PTI). At the Interbank Foreign Exchange market, the rupee moved between 71.68 to 71.49 during the session, before finally ending at 71.56, showing a gain of just 1 paise, the report said. On Tuesday, the rupee had ticked higher by 23 paise to close at 71.57 per dollar
Here are 10 things to know about rupee:
- Rupee has been trading in a narrow range ahead of RBI's monetary policy meeting outcome, scheduled for February 7.
- The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 96.21, higher by 0.16 per cent.
- "This week, there are relatively thin volume trades in currency markets, as many Asian markets are shut on Lunar New Year," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities.
- Mr Sharma added that volatility for the dollar-rupee pair could be confined to a narrow range until the release of the policy statement.
- According to Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, though rupee is the worst performing emerging market currency over the last one month, it is expected to recover "should crude prices continue to slide and RBI announces a rate cut in Thursday's meeting".
- Thursday's monetary policy statement by the central bank will mark the first under governor Shaktikanta Das.
- According to Mohit Ralhan, Managing Partner & Chief Investment Officer, TIW Private Equity, rupee is broadly expected to be stable in near term due to both upside risk and downside risks broadly balancing.
- The benchmark Brent crude futures, on the other hand, fell 0.76 per cent to $61.51 per barrel on Wednesday.
- Foreign funds purchased shares worth Rs 694.97 crore on a net basis on Wednesday, and domestic institutional investors bought equities worth Rs 525.26 crore, provisional data showed.
- Domestic stock markets extended the rally to fifth day with the S&P BSE Sensex surging over 350 points and the NSE Nifty 50 Index climbing above 11,050 to hit highest level in over four months.
(With inputs from agencies)
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