Rupee rises 10 paise to 82.28 against US dollar

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     Mumbai, Dec 9 (PTI) The rupee appreciated by 10 paise to close at 82.28 against the US dollar on Friday, tracking the weakening of the American currency in the overseas market.
     Forex traders said muted domestic equities and foreign fund outflows weighed on investor sentiments and restricted the gains.
     At the interbank foreign exchange market, the local unit opened at 82.30 and touched an intra-day high of 82.08 and a low of 82.33 against the greenback.
     It finally settled at 82.28, registering a rise of 10 paise over its previous close of 82.38.
     Forex traders said investors awaited the outcome of a slew of central bank meetings next week for additional clues on the pace of rate hikes.
     "Focus will now be shifting to the FOMC policy statement. The central bank could raise rates by 50 bps and maintain a less hawkish stance," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
     "We expect the USD-INR (Spot) to trade sideways and quote in the range of 82.20 and 82.80," Somaiya added.
     Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.06 per cent to 104.71.
     Global oil benchmark Brent crude futures rose 1.22 per cent to USD 77.08 per barrel.
     On the domestic equity market front, the 30-share BSE Sensex declined 389.01 points or 0.62 per cent to end at 62,181.67, while the broader NSE Nifty fell 112.75 points or 0.61 per cent to 18,496.60.
     Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,131.67 crore, according to exchange data.
     Indian Rupee appreciated on Friday amid a weak Dollar, said Anuj Choudhary- Research Analyst at Sharekhan by BNP Paribas.
     However, weak domestic markets and FII outflows capped sharp gains. The US dollar declined amid disappointing economic data and positive global equities, Choudhary said.
     "We expect Rupee to trade with a slight negative bias on risk aversion in global markets and US Dollar may strengthen on expectations of hawkish Federal Reserve," Choudhary added.
     According to Dilip Parmar, Research Analyst at HDFC Securities, the Indian rupee registered the biggest weekly decline after October 7, after RBI hiked the interest rate by 35 bps.
     Market participants are cautious ahead of next week's inflation data and US Fed policy decision.
     "Risk-averse sentiments and dollar demand is weighing on the rupee even after weaker crude oil prices... In the near term, spot USD-INR is expected to trade in a broad range of 81.25 to 83," Parmar said. PTI DRR ABM
ABM

(This story has not been edited by THE WEEK and is auto-generated from PTI)