Rupee settled flat at 70.98 against the US dollar

Mumbai, December 17 () The early morning rupee park gained to cope with 2 paise down at 70.98 against the US currency on Tuesday amid a shortage of any major triggers on the domestic front.

Forex traders said while supporting foreign exchange funds and heavy purchases in domestic equities supported the rupee, rising crude prices and dollar gains in the global market that restricted the uprising.

In the interbank foreign exchange market, the rupee opened at 70.96 against the US dollar. On the day, the domestic unit saw a high of 70.87 and a low of 71.02.

The domestic unit finally settled at 70.98, less than 2 paise above the previous closing price. On Monday the rupee settled at 71.00 against the US dollar.

We expect that in the next volatility sessions for the rupee may remain low as no basic economic data is expected to be released. The USDINR (Spot) cites a range of 70.70 and 71.20, says Saurang Somaiyaa, Forex&Bullion Analyst. , Motilal Oswal Financial Services Private Ltd.

Forex traders said heavy purchases on domestic equities and foreign exchange flows supported the local unit.

On the domestic market front, the 30-share BSE barometer settled 413.45 points, or 1.01 percent, above the all-time high of 41,352.17. Similarly, the wider NSE Nifty rallied to 111.05 points, or 0.92 percent, with a record close of 12,165.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, as they purchased shares worth Rs 728.13 crore on Monday, exchange data showed.

The rupee extended its gains to late afternoon trading on the FPI's likely outflow to local stocks following improved sentiment after US-China reached an initial trade deal and Government's positive measures, said LKP Securities Senior Research Analyst (Commodity&Currency) Jateen Trivedi.

Market participants, however, said the price of crude oil in the local currency increased.

Futures futures, the global oil benchmark, rose 0.26 percent to USD 65.51 per barrel.

The dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.10 percent to 97.11.

The 10-year government bond yield was up 6.76 percent on Tuesday. Financial Benchmark India Private Ltd (FBIL) has set the reference rate for the rupee/dollar at 70.9410 and for the rupee/euro at 79.0084. The reference rate for the rupee/British pound was fixed at 94.9645 and for the rupee/100 Japanese yen at 64.85. DRR MR MR