Rupee Trades In Narrow Range, Slips To 75.54 Against Dollar

Rupee Vs Dollar Today: The rupee moved between 75.48 and 75.60 during the four-hour session.

Rupee Trades In Narrow Range, Slips To 75.54 Against Dollar

Rupee Vs Dollar: The rupee weakened to as low as 75.60 against the dollar during the session

Rupee Vs Dollar Today: The rupee traded in a narrow range against the dollar with a downward bias on Wednesday, before shutting shop at 75.59 for the day amid a mixed trend in Asian currencies. After starting the day nearly unchanged at 75.52 against the US currency, the rupee moved in a range of 12 paise between 75.48 and 75.60 during the four-hour session, compared to its previous close of 75.50. While strength in the dollar overseas affected the rupee, gains in domestic equity markets kept the losses in check, say analysts. At the current level, the rupee is down 5.93 per cent against the greenback so far this year.

Domestic stock markets jumped more than 1 per cent as they entered the second half of the year, helped by heavyweight financials, although worries over the impact on the economy from a persistent surge in coronavirus cases tempered investor sentiment. The S&P BSE Sensex index soared as much as 1.54 per cent - or 538.38 points - to touch 35,454.18 during the session, whereas the broader NSE Nifty 50 benchmark climbed as much as 1.41 per cent to 10,446.90. 

The dollar index - which measures the dollar against six currencies - was last seen trading near the day's lowest point, down 0.17 per cent.

While the Japanese yen traded 0.37 per cent higher, the Taiwanese and Singaporean dollars were up 0.04 per cent and 0.06 per cent respectively. The Chinese yuan was up 0.08 per cent at the time, but the South Korean won and the Thai baht were down 0.05 per cent and 0.13 per cent respecctively.

Analysts expect the rupee to continue to move sideways in the near term.

"Currently, with a favourable outlook for the rupee coupled with risk-on mood, the rupee will remain well-supported in the near term. The extent of strength in the rupee will depend upon how far the Reserve Bank of India will allow it to appreciate, said Amit Pabari, managing director, CR Forex Advisors.

"The (USD-INR) pair is likely to remain within its range of 75.00-76.20 levels for few more trading sessions," he said. 

Crude oil prices rose on Wednesday after an industry report showed US stockpiles staged a bigger drop than expected, suggesting demand is improving even as the coronavirus outbreak spreads around the world. Brent crude futures - the benchmark for crude oil - were up 0.8 per cent at $41.58 per barrel.

Currency markets currently operate within reduced trading hours due to the coronavirus-induced lockdown. The temporary timings are from 10 am to 2 pm, instead of the normal timings of 9 am to 5 pm.