Bombay:
The rupee further appreciated by 10 paise to settle at 77.24 (provisional) against the US dollar on Wednesday as the US currency pulled back from its 20-year highs.
In the interbank forex market, the domestic unit opened at 77.24 against the US dollar. It moved within a range of 77.17 to 77.31 during day trading.
The rupee eventually closed at 77.24, up 10 paise from its previous close. On Tuesday, the rupee was settled at 77.34 against the US currency.
“The rupee consolidated within a narrow range after falling to new all-time lows earlier this week. On the domestic front, market participants remained cautious ahead of the inflation figure to be released on Thursday.
“The number is expected to rise above 7 percent. From the US, the CPI number will be released and is also expected to remain high,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
The dollar index traded below the 20-year high of 104.49 that it crossed early this week ahead of the release of inflation data in the US. The dollar index, which measures the dollar’s strength against a basket of six currencies, was trading 0.39 percent lower at 103.51.
In the domestic stock market, the 30-share BSE Sensex finished 276.46 points or 0.51 percent lower at 54,0888.39, while the broader NSE Nifty fell 72.95 points or 0.45 percent to 16,167.10.
Futures on Brent oil, the global oil benchmark, rose 3.26 percent to $105.80 a barrel.
Foreign institutional investors were net sellers in the capital market on Tuesday as they sold shares worth Rs 3,960.59 crore, according to stock market data.