<p>Mumbai: Rupee traded in a narrow range and depreciated 4 paise to 85.19 against the US dollar in early trade on Tuesday, as the support from positive domestic equities was negated by dollar short-covering by investors.</p>.<p>Forex traders said concerns persisted over economic headwinds from tariffs and US monetary policy that could dampen demand.</p>.<p>At the interbank foreign exchange, the domestic unit opened at 85.11 then fell to 85.19 against the greenback in early deals, registering a loss of 4 paise over its previous closing level. On Monday, the rupee appreciated 23 paise to settle at 85.15 against the US dollar.</p>.Markets climb in early trade amid foreign fund inflows, buying in bank stocks.<p>"Concerns of a potential recession driven by the tariff war persist. The US president again repeated his criticism of FED chair Powell and said that the US economy will slow unless interest rates are lowered immediately.</p>.<p>"His comments fuelled worries about the FED's independence in setting monetary policy and about the outlook for US assets," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.</p>.<p>The rupee opened slightly weaker after touching a high of 85.03 on Monday which was almost a month's high with inflows pouring in debt as well as equity, Bhansali said.</p>.<p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.19 per cent at 98.09.</p>.<p>Brent crude, the global oil benchmark, rose 0.53 per cent to $66.61 per barrel in futures trade.</p>.<p>In the domestic equity market, the 30-share BSE Sensex rose by 155.28 points, or 0.20 per cent, to 79,563.78, while the Nifty advanced 37.30 points, or 0.15 per cent, to 24,162.85.</p>.<p>Foreign institutional investors (FIIs) bought equities worth Rs 1,970.17 crore on a net basis on Monday, according to exchange data.</p>
<p>Mumbai: Rupee traded in a narrow range and depreciated 4 paise to 85.19 against the US dollar in early trade on Tuesday, as the support from positive domestic equities was negated by dollar short-covering by investors.</p>.<p>Forex traders said concerns persisted over economic headwinds from tariffs and US monetary policy that could dampen demand.</p>.<p>At the interbank foreign exchange, the domestic unit opened at 85.11 then fell to 85.19 against the greenback in early deals, registering a loss of 4 paise over its previous closing level. On Monday, the rupee appreciated 23 paise to settle at 85.15 against the US dollar.</p>.Markets climb in early trade amid foreign fund inflows, buying in bank stocks.<p>"Concerns of a potential recession driven by the tariff war persist. The US president again repeated his criticism of FED chair Powell and said that the US economy will slow unless interest rates are lowered immediately.</p>.<p>"His comments fuelled worries about the FED's independence in setting monetary policy and about the outlook for US assets," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.</p>.<p>The rupee opened slightly weaker after touching a high of 85.03 on Monday which was almost a month's high with inflows pouring in debt as well as equity, Bhansali said.</p>.<p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.19 per cent at 98.09.</p>.<p>Brent crude, the global oil benchmark, rose 0.53 per cent to $66.61 per barrel in futures trade.</p>.<p>In the domestic equity market, the 30-share BSE Sensex rose by 155.28 points, or 0.20 per cent, to 79,563.78, while the Nifty advanced 37.30 points, or 0.15 per cent, to 24,162.85.</p>.<p>Foreign institutional investors (FIIs) bought equities worth Rs 1,970.17 crore on a net basis on Monday, according to exchange data.</p>