Mumbai: The rupee consolidated in a narrow range and settled for the day higher by just 2 paise at 85.38 against the American currency in a volatile trade on Wednesday, amid a negative trend in domestic equities and elevated crude oil prices.
Forex traders said rupee opened on a weak note on weak domestic markets and elevated crude oil prices. However, it recovered from lower levels as the US Dollar index softened in the latter half of the session.
The rupee’s outlook remains favorable due to improved economic conditions and foreign fund inflows, they said.
At the interbank foreign exchange, the domestic unit opened at 85.59 and moved between an intraday high of 85.33 and a low of 85.72 against the greenback.
The local unit ended the session at 85.38 against the dollar, higher by 2 paise from its previous close.
On Tuesday, the rupee closed 30 paise lower at 85.40 against the greenback.
“The Indian rupee traded on a flat note on Wednesday. Rupee opened on a weak note on weak domestic markets and elevated crude oil prices. However, it recovered from the lower levels as the US Dollar index softened in the latter half of the session,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.
Choudhary further noted that “Month-end Dollar demand from importers may weigh on the rupee. However, the weak tone in the greenback may support the Rupee. USDINR spot price is expected to trade in a range of 85.10 to 85.70.”
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.16 per cent at 99.68.
Brent crude, the global oil benchmark, rose 1.39 per cent to USD 64.98 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex fell 239.31 points, or 0.29 per cent, to close at 81,312.32, while the Nifty declined 73.75 points, or 0.30 per cent, to 24,752.45.
Foreign institutional investors (FIIs) purchased equities worth Rs 4,662.92 crore on a net basis on Wednesday, according to exchange data.
On the domestic macroeconomic front, India’s industrial production growth slowed to 2.7 per cent in April 2025 due to poor performance of manufacturing, mining and power sectors, according to official data released on Wednesday.
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