The rupee ended practically flat at 82.89 (provisional) versus the US dollar in restricted trading on Tuesday, owing to foreign capital withdrawals and heightened month-end demand for the American currency.
According to FX specialists, the Indian rupee survived a significant drop due to strong equities market mood and a lower dollar, even as investors focused on local and global macroeconomic data expected this week.
At the interbank foreign exchange market, the local currency started at 82.87 versus the dollar and fell to 82.90 in intraday activity. The local currency eventually finished at 82.89 (provisional) versus the dollar, down 1 paisa from the previous closing level.
The rupee moved barely at all, trading marginally worse, according to Jateen Trivedi, VP Research Analyst at LKP Securities, while the dollar index stayed steady at about 103.65.
Later in the evening, market players are anticipating the publication of CB consumer sentiment data and core durable orders, which may have an effect on the dollar index and additional fluctuation in the rupee, he continued.
In the meantime, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, fell 0.12% to 103.62. Regarding the local equities market, the Sensex ended at 73,095.22 points, up 305.09 points, or 0.42 percent. The Nifty closed at 22,198.35 points, up 76.30 points, or 0.34 percent. According to exchange statistics, foreign institutional investors (FIIs) sold shares worth Rs 285.15 crore on a net basis on Monday, making them net sellers in the capital markets.
