Rupee falls 3 paise to close at 88.80 against US dollar

Mumbai: The rupee witnessed range-bound trade on Wednesday and settled for the day lower by three paise at 88.80 (provisional) against the US dollar, tracking a negative trend in domestic equities amid a rise in risk-off sentiments.

Forex traders said the US dollar is holding its ground, yet beneath the dollar's steady facade lies a growing tension.

The rupee is likely to remain within a narrow range, supported by domestic triggers such as IPO-related inflows, and potential progress in US–India trade talks could gradually tilt sentiment in the rupee's favour.

At the interbank foreign exchange, the rupee opened at 88.76 against the US dollar, touched an intraday low of 88.81 and finally settled for the day at 88.80 (provisional), registering a loss of 3 paise over its previous close.

On Tuesday, the rupee fell three paise to close at 88.77 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.88, higher by 0.31 per cent.

Brent crude, the global oil benchmark, was trading 1.25 per cent higher at USD 66.27 per barrel in futures trade.

Foreign institutional investors purchased equities worth Rs 1,440.66 crore on a net basis on Tuesday, according to exchange data.

On the domestic equity market front, the Sensex dropped 153.09 points to settle at 81,773.66, while the Nifty declined 62.15 points to 25,046.15.

Meanwhile, Commerce and Industry Minister Piyush Goyal said on Tuesday that India and the US are in continuous dialogue on the proposed bilateral trade agreement, and all possibilities exist to meet the November deadline for concluding the talks.

On the possibility of the next round of trade negotiations in a physical mode, he said that every possibility exists, but with the US government currently in shutdown mode, it remains to be seen how, where, and when the next round of talks can take place.