The rupee traded in a narrow range and depreciated 4 paise to 85.63 against the US dollar in early trade on Wednesday (July 2), as market awaits the conclusion of India-US trade deal, which is at its final stage.Forex traders said the dollar index continued to remain under pressure against major peers as traders considered the dovish hints from FED chair Jerome Powell.
At the interbank foreign exchange, the domestic unit opened at 85.59 against the greenback. In initial trade, it witnessed a low of 85.63, registering a fall of 4 paise over its previous close.
On Tuesday (July 1), the rupee appreciated 17 paise to close at 85.59 against the US dollar.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.11% to 96.70.
Brent crude, the global oil benchmark, went up by 0.04% to $67.14 per barrel in futures trade.Hectic negotiations between India and the US entered the sixth day on Tuesday in Washington, with the talks reaching a crucial stage and New Delhi demanding greater market access for its labour-intensive goods.The Indian team, headed by special secretary in Department of Commerce Rajesh Agrawal, is in Washington for negotiations on an interim trade agreement with the US.The two sides are looking at finalising the talks before the July 9 deadline.”As market awaits for the deal we expect rupee to be range bound between 85.35/95 with no particular direction,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.Meanwhile, in the domestic equity market, Sensex advanced 41.24 points or 0.05% to 83,738.53, while Nifty fell 4.35 points or 0.02% to 25,537.45.Foreign institutional investors (FIIs) offloaded equities worth ₹1,970.14 crore on a net basis on Tuesday, according to exchange data.
