Rupee ends almost flat at 89.23 against US dollar

Mumbai: 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 per cent to 99.70.

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

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

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