Currency Market News: Rupee rises 6 Paise to 85.51 vs dollar

Rupee appreciated by 6 paise to 85.51 against the US dollar in early trade on Wednesday, supported by strong foreign institutional investor (FII) inflows and a dip in global crude oil prices.

According to forex traders, the rupee is expected to trade within a range of 85.40 to 90 during the day, with mid-month demand anticipated for oil, defence, and government-related payments.

At the interbank foreign exchange market, the rupee opened at 85.53 and later edged up to 85.51, marking a 6 paise gain from Tuesday’s close. On Tuesday, the domestic currency had strengthened by 9 paise to settle at 85.57.

Also Read:Currency Market News: Rupee gains 4 paise to close at 85.62 vs dollar amid strong FII inflows

“The rupee remained range-bound and subdued in yesterday’s session as markets awaited progress on a trade agreement between China and the US. Today, it is likely to stay within the 85.40-90 range,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

Stock market summary

In the equity market, Indian indices opened on a flat note following mixed global cues. The Nifty50 rose modestly by 18 points (0.07 per cent) to 25,122.85, while the Sensex was up by 51 points (0.06 per cent) at 82,442.86. The Bank Nifty also showed mild gains, trading at 56,633.40. Smallcap stocks outperformed the benchmark indices in early trade.

Meanwhile, the US dollar index, which measures the dollar’s performance against a basket of six major currencies, rose slightly by 0.05 per cent to 99.14 after falling on Tuesday night.

Also Read:First Trade: Indices open mildly higher; Nifty at 25,123  

“The dip in US futures came after a court upheld President Donald Trump’s trade tariffs, dampening optimism that legal challenges could overturn the duties. Although US and Chinese officials claimed to have reached a consensus on a trade framework, specific details remain unclear,” Bhansali added.

On the commodities front, Brent crude futures slipped by 0.18 per cent to $66.75 per barrel. Foreign institutional investors remained net buyers, investing Rs 2,301.87 crore in Indian equities on Tuesday, as per exchange data.