Rupee settles 4 paise higher at 73.31 against US dollar

The rupee edged 4 paise higher to close at 73.31 against the US dollar on Wednesday, tracking weak American currency.

At the interbank forex market the rupee traded in a narrow range. It opened at 73.39 against the US dollar and finally settled for the day at 73.31 against the greenback, higher by 4 paise over its previous close of 73.35.

During the session, the domestic unit witnessed an intra-day high of 73.28 and a low of 73.47 per US dollar.

Market participants are still under the notion that a new US stimulus is coming, but the delay is hinting that it may be rolled out after the US election, said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

“Also, the halt in Covid-19 vaccine trials calibrates that the race for a vaccine is bumpy and we cannot hope for a quick global economic recovery," he added.

Gupta further said that "the USD-INR spot is trading sideways in between 73-73.60 and we may see it to continue being in this range."

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 93.50.

On the domestic equity market front, the BSE benchmark Sensex was trading 183.53 points lower at 40,441.98, and the broader NSE Nifty dropped 65.75 points to 11,868.75.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 832.14 crore on a net basis on Tuesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.09 per cent to USD 42.49 per barrel.