The Indian rupee rose 12 paise to close at 73.42 against the USD on Tuesday amid growing concerns over the COVID-19 cases.
Investors were also cautious with the RBI policy statement released on Wednesday. In addition, the rise in crude oil prices and the strong dollar overseas prices fell on the basis of the rupee sentiment.
Despite volatility in domestic equities, the rupee continued to trade in a narrow range for the third consecutive session. Market participants will be cautious ahead of the important RBI policy statement released on Wednesday, ”said Gorying Somaiya, forex and bullion analyst, Motilal Oswal Financial Services.
Somaiya said that it is expected that the central bank can keep the rates unchanged, but the commentary can be viewed with curiosity. “We expect USDINR (Spot) to trade with a positive bias and bids in the range of 73.20 and 73.80,” he said.
The dollar index, which estimates the strength of the greenback against a basket of six currencies, rose 0.13 percent to 92.71. Global oil benchmark Brent crude futures were trading up 2.37 percent at $ 63.62 a barrel.
In the stock market today, the BSE Sensex rose 42 points to 49,201, while the NSE Nifty 50 index closed up 45 points at 14,683.