Rupee settles almost flat at 95.73 vs USD

MUMBAI, AUG 19 (PTI): The rupee stayed almost flat, ending just 1 paisa higher at 95.73 against the US dollar on Wednesday as a sharp rise in global crude oil prices amid heightened tensions in West Asia kept markets on edge.
Unabated selling in domestic equity markets put further pressure on the local unit, while RBI intervention and foreign fund inflows lent support, according to forex traders.
At the interbank foreign exchange, the rupee opened at 95.72 and traded in a narrow range of 95.72-95.76. It ended the session at 95.73, up 1 paisa from its previous close.
The rupee depreciated 13 paise to close at 95.74 against the US dollar on Tuesday.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said the rupee traded slightly higher, supported by a decline in the US Dollar Index. But gains remain limited amid elevated crude prices and global uncertainty. “Market participants will now focus on the FOMC (Federal Open Market Committee) meeting minutes for fresh cues on the Fed’s rate outlook and dollar movement.
The rupee is expected to trade in the 95.40–95.90 range in the near term,” Trivedi said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.85, up 0.04 per cent.
Brent crude, the global oil benchmark, was trading higher by 0.92 per cent at USD 91.86 per barrel in futures trade.
Analysts attributed the volatility in crude prices to uncertainties on the West Asia front. US President Donald Trump said on Tuesday that the US has no talks planned with Iran but insisted the Strait of Hormuz remains “open and operating”, despite limited traffic and a reported strike on a ship exiting the waterway.
In the domestic equity markets, Sensex settled 325.78 points, or 0.42 per cent, down at 76,909.68 points, while the Nifty skidded 76.60 points, or 0.32 per cent, to close at 24,078.30.
Foreign institutional investors purchased equities worth Rs 407.99 crore on a net basis on Wednesday, according to exchange data.