The Indian rupee was trading in a narrow range against the US dollar in early trade on Wednesday, as the support from positive equities was negated by strong American currency.
Forex traders said elevated crude oil prices in the international market dented investors’ sentiments.
At the interbank foreign exchange, the rupee opened at 83.33 against the dollar (22.70 against UAE dirham) and touched an early low of 83.34 (22.70 against dirham) in initial trade, registering a fall of 5 paise over its previous close. It was later trading at 83.31 against the American currency.
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The Indian currency was expected to face some pressure on the back of a decline in the offshore Chinese yuan that dragged most Asian currencies lower.
Last week, a decline in the yuan had pressured the rupee alongside dollar outflows, pushing it to a record low on Friday. But the currency recovered by nearly 0.2 per cent on Tuesday, likely aided by the central bank’s intervention and remittance inflows, traders said.
US data released overnight was mixed with durable goods orders showing a bigger-than-expected jump in February, although the consumer confidence print came in below expectations.
With no key US economic data expected, investors will keep an eye on remarks from Federal Reserve Board Governor Christopher Waller slated to speak later in the day.
In recent remarks, Fed officials have reiterated that they still believe inflation will continue to ease but also acknowledged the heightened sense of caution about the trajectory.
(With inputs from PTI, Reuters)