Rupee Ends Almost Flat At 89.23 Against US Dollar

The rupee slipped 1 paisa to close at 89.23 (provisional) against the US dollar in a range-bound trade on Wednesday, as firm domestic equities and a slide in global crude prices offset the impact of a strengthening greenback.

Foreign fund outflows and concerns over geopolitical developments sapped risk appetite in the market, pushing investors towards safe-haven assets, forex traders said.

At the interbank foreign exchange market, the rupee opened at 89.24 and moved in a close range of 89.17-89.28 against the dollar. The unit finally settled at 89.23, registering a loss of 1 paisa from its previous closing level.

Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, said the rupee is expected to trade with a slight positive bias on rising odds of an interest rate cut by the US Federal Reserve in December and a rise in risk appetite in global markets.

"However, importer demand for dollars may cap sharp upside. USD-INR spot price is expected to trade in a range of Rs 89 to Rs 89.50," he added.

On Tuesday, the rupee settled 6 paise lower at 89.22 against the greenback.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12% to 99.70.

Brent crude, the global oil benchmark, fell 0.13% to $62.40 per barrel in futures trade.

On the domestic equity market front, the Sensex soared 1,022.50 points, or 1.21%, to settle at 85,609.51, while Nifty climbed 320.50 points, or 1.24%, to 26,205.30.

Foreign institutional investors purchased equities worth Rs 785.32 crore on a net basis on Tuesday, according to exchange data.