Indian rupee inches 4 paise higher against US dollar

The Indian rupee opened at 74.43 against the US dollar, then inched four paise higher to 74.39 at the interbank foreign exchange.

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In opening trade on Wednesday, amid a negative trend in the domestic equity market, the Indian rupee opened on a flat note while inching four paise higher to 74.39 against the US dollar.

However, it registered a drop of a paisa over its previous session by ending at 74.44 as on Tuesday, the rupee had settled at 74.43 against the American currency.

The dollar index, which gauges the strength of the greenback against a basket of six currencies increased 0.11 per cent to 93.16. Brent crude, which is considered a global benchmark of oil, futures declined 0.25 per cent to USD 70.45 per barrel.

A Research Analyst at HDFC Securities, Dilip Parmar, stated, “Indian rupee settled flat on the back of the lacklustre movement, taking cues from other Asian currencies. Spot USD/INR is expected to trade in the range of 74.10 to 74.60.”

Parmar continued saying that on the overseas front, the softness observed in Euro had helped to lift the greenback towards the four-month highs in late July and headed for the fourth consecutive gain against a basket of peers.

According to forex traders, foreign fund outflows, as well as a negative trend in the domestic equity market, will possibly weigh on the local unit.

On domestic equities, BSE Sensex traded 218.9 points or 0.40 per cent lower at 54,335.76. The broader NSE Nifty fell 68.25 points or 0.42 per cent to 16,211.85.

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