Rupee Trades Range Bound In Morning Session.

On Tuesday morning, the Indian rupee traded in a range and fell by 3 paise to 83.57 against the US dollar, due to a muted trend in the domestic equity market and rising crude oil prices. Forex traders have said that the rupee remains steady within a well – defined range due to active intervention by the Reserve Bank of India (RBI). On Monday, the rupee lost its early gains and closed 2 paise lower at 83.54 against the US dollar. In the interbank foreign exchange market, the local currency moved in a narrow range. It opened at 83.54 against the US dollar and then fell to 85.57, indicating a decline of 3 paise compared to its previous close. The Indian rupee reached a two – month high before retreating all its gains due to dollar buying by the Reserve Bank, bringing it back to the 83.55 level. On Tuesday, the rupee opened nearly flat within a range of 83.40 to 83.65, with the market watching what the RBI would do to control the appreciation. The dollar index, which measures the strength of the dollar against a basket of six currencies, increased by 0.07 percent to reach 100.92 points. In the domestic equity market, the 30 – share BSE Sensex rose by 61.22 points, or 0.007 percent, to reach 84,989.83, while the Nifty increased by 22.20 points, or 0.09 percent to stand at 25,961.25 points. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth ₹404.42 crore, according to exchange data.