Indian Rupee the local currency benchmark, opened on a flat note, rising 2 paise higher to 73.33 per dollar in opening trade on Wednesday amid weakness in domestic equities and absence of any major data triggers.
In economic news, today wholesale inflation for September month is set to release.
The local unit was trading in a narrow range after opening at 73.39 per dollar at the interbank forex market and gained momentum to rise by 2 paise to 73.33 per dollar.
On Tuesday, Indian rupee fell by 7 paise and settled at 73.35 per US dollar on Tuesday tracking muted domestic equities and strengthening American currency.
“Due to the uncertainty surrounding the outcome of the US elections, investors will refrain themselves from taking large positions and we could witness that the markets could remain within a broad trading range of 73-74,” Reliance Securities said in a research note.
Further, stalled talks on US stimulus, COVID-19 vaccine uncertainty and weak Asian currencies could limit gains for the domestic unit, while, RBI mopping up flows by purchasing dollars could also keep the domestic unit from appreciating above 73 levels, the note added.
According to Abhishek Goenka, Founder and CEO, IFA Global, “In the absence of any major data or triggers, we expect range-bound trading to continue.”
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.01 per cent to 93.51. US dollar was steady as lack of news from the political front.
On the domestic equity market front, market indices traded on a negative note after nine consecutive days of gains on Wednesday, amid weakness in global equities. Sensex traded 226 points lower at 40,398 and Nifty was falling 77 points to 11,857.
Foreign portfolio investors (FPIs) bought shares worth Rs 832.14 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,674.46 crore in the Indian equity market on 13 October, provisional data showed.
Brent crude futures, the global oil benchmark, fell 0.19 per cent to USD 42.37 per barrel.
Worldwide, there were 383 lakh confirmed cases and 10.9 lakh deaths from COVID-19 outbreak. India’s COVID-19 caseload breached the 72-lakh mark and the death toll from COVID-19 infections rose to 11.0 lakh, as of today.
(Edited with PTI Inputs)