The rupee fell by 3 paise to close at 88.80 against the US dollar

The rupee witnessed intra-band trading on Wednesday and settled three paise lower for the day at 88.80 (provisional) against the US dollar. This followed a negative trend in domestic equities amid a rise in risk sentiment.

Forex traders said the US dollar is holding steady, but beneath the greenback’s steady façade lies growing tension.

The rupee is likely to remain within a narrow range, supported by domestic factors such as IPO-related inflows, and potential progress in US-India trade talks could gradually tilt sentiment in the rupee’s favor.

At the interbank forex market, the rupee opened at 88.76 against the US dollar, touched an intraday low of 88.81 and finally settled for the day at 88.80 (provisional), registering a loss of 3 paise against the previous close.

On Tuesday, the rupee fell by three paise to close at 88.77 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.88, up 0.31 percent. Brent crude, the global oil benchmark, was 1.25 percent higher at $66.27 per barrel in futures trading. Foreign institutional investors bought shares worth Rs 1,440.66 crore on net on Tuesday, according to stock exchange data.

In the domestic equity market, the Sensex fell 153.09 points to settle at 81,773.66, while the Nifty fell 62.15 points to 25,046.15.

Meanwhile, Commerce and Industry Minister Piyush Goyal on Tuesday said that India and the US are in continuous dialogue on the proposed bilateral trade deal, and all options exist to meet the November deadline for concluding the talks.

On the possibility of another round of trade talks in physical form, he said that all possibilities exist, but with the US government currently in shutdown mode, it remains to be seen how, where and when the next round of talks can take place.