Rupee opens on flat note against US dollar

Traders further said that the domestic unit is trading in a narrow range.

HYDERABAD (AP) -16-03-2012 - BL/ B U D G E T 2012 -- The Rupee gained 11 paise on a day the Union Budget 2012 was presented but with inflation remaning high for most of the year , it turns out that inflation was a moving target hard to rein in -- PHOTO: P.V.SIVAKUMAR .

The rupee opened on a flat note and was trading in a narrow range against the US dollar in opening session on Thursday.

At the interbank forex market, the domestic unit opened at 73.81 against the US dollar, then gained ground and touched 73.77 against the American currency. In volatile trade, the local unit also touched 73.89 against the American currency.

On Wednesday, the rupee settled 13 paise lower at 73.81 against the US dollar.

Analysts said investor focus will be on Reserve Bank of India’s Monetary Policy Committee’s three-day interest rate-setting meeting that started Wednesday, with the decision due on Friday.

Traders further said that the domestic unit is trading in a narrow range as positive sentiments surrounding the potential vaccine is supporting the currency but the presence of the central bank could keep appreciation bias limited.

“Weak US dollar and improved risk appetite in the region could lend support,” Reliance Securities said in a research note adding that “RBI’s presence in the market could keep appreciation bias limited”.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.14% to 90.98.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 209.92 points higher at 44,827.96, and the broader NSE Nifty rose 64.70 points to 13,178.45.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth ₹ 357.35 crore on a net basis on Wednesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 0.21% to USD 48.15 per barrel.