Forex traders said the rupee is trading in a tight range and the overall bias is expected to be negative amid uncertainty over the trade tariffs issue between India and the US.
Moreover, investors are in a wait-and-watch mode ahead of the US CPI inflation data and are also awaiting cues from the US-Russia talks on August 15.
At the interbank foreign exchange market, the rupee opened at 87.70 against the US dollar, then touched 87.65, registering a gain of 10 paise over its previous close.
On Monday (August 11), the rupee settled for the day lower by 17 paise at 87.75 against the US dollar.
”For now, the rupee remains under depreciation pressure, with resistance seen in the 87.80–87.90 range. Support is holding firm at 87.50. A clear break on either side could decide whether the currency stabilises or slides further in the days ahead,” CR Forex Advisors MD Amit Pabari said.
Meanwhile, Brent crude prices rose 0.33 per cent to $66.85 per barrel in futures trade. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.03% to 98.49.
On the domestic equity market front, Sensex climbed 66.28 points to 80,670.36 in early trade, while the Nifty was up 42.85 points to 24,627.90.
Foreign Institutional Investors offloaded equities worth Rs 1,202.65 crore on Monday (August 11), according to exchange data.
