The rupee fell by 4 paise to 82.29 against the US dollar

The silent auction for equities under the country's transition saw the Indian rupee depreciate against the US dollar, reaching 82.29, down by 4 paise, during Wednesday's trading.

Market participants attributed this downward trend to the restricted trading range of the rupee due to anticipation of the US Federal Reserve's interest rate decisions. In interbank transactions, the exchange rate opened at 82.28, rose to 82.29, and noted a decrease of 4 paise compared to the previous closing. On Tuesday, the dollar stabilized at 82.25 against the rupee. Factors supporting the appreciation of the rupee include strong fundamentals, stable FII (Foreign Institutional Investor) inflows, and weakening of the dollar index, according to CR Forex Strategist MD Amit Pabari. Pabari further mentioned that the devaluation of the Chinese currency could limit the capacity for rupee appreciation as Chinese banks consider rate cuts due to the economic slowdown. "Overall, we expect the USDINR exchange rate to remain within the range of 81.80-82.80. Importers are advised to hedge against any depreciation below 82-81.80, while exporters should wait for a pullback towards 82.50-60 before taking action," said Pabari. The dollar index, which gained strength against the six-currency basket, appreciated by 0.05% to reach 103.28. Brent crude futures, the global oil benchmark, increased by 0.08% to reach $74.35 per barrel. In the domestic equity market, the BSE Sensex, consisting of 30 shares, traded at 63,119.43, down by 23.73 points or 0.04%. The broader NSE Nifty rose by 5.90 points or 0.03% to reach 18,722.05. Foreign institutional investors (FIIs) were net buyers in the market on Tuesday, purchasing shares worth Rs 1,677.60 crore, as per the exchange data.