Rupee pares early gains, settles 9 paise lower at 72.55 against US dollar

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Mumbai, Mar 16 (PTI) The rupee pared its initial gains and depreciated 9 paise to settle at 72.55 (provisional) against the US dollar on Tuesday as muted domestic equities and strengthening of the greenback overseas weighed on investor sentiment.

At the interbank forex market, the local unit opened at 72.46 against the American currency and witnessed an intra-day high of 72.37 and a low of 72.64.

It finally ended at 72.55, registering a fall of 9 paise over its previous closing. On Monday, the rupee had settled at 72.46.

'Indian Rupee depreciated amid strong dollar and muted domestic markets. Further, rupee slipped on disappointing macroeconomic data,' said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

Additionally, market remained cautious ahead of major central banks monetary policy meetings, Mukadam said.

However, sharp downside was prevented on softening of crude oil prices.

Crude oil prices slipped on concern about slow pace of vaccination in the EU after Germany, France and Italy joined other European nations to hit pause on AstraZeneca COVID-19 vaccine, Mukadam said.

Rupee may trade in the range of 72.25 to 73.00 in next couple of sessions, he added.

The dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.04 per cent to 91.87.

Meanwhile, Brent crude futures, the global oil benchmark, fell 1.51 per cent to USD 67.84 per barrel.

On the domestic equity market front, the BSE Sensex ended 31.12 points or 0.06 per cent lower at 50,363.96, while the broader NSE Nifty fell 19.05 points or 0.13 per cent to 14,910.45.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,101.35 crore on Monday, according to exchange data. PTI DRR DRR ABM ABM