Rupee pared initial losses to close 9 paise higher at 74.28 against the dollar on Wednesday even though domestic equities continued on a muted trajectory.
The local currency opened weak at 74.51 against the dollar on Wednesday. It oscillated in the range of 74.25 to 74.51 before closing 9 paise higher over its previous close. On Tuesday, the rupee had closed 9 paise higher at 74.37 over the previous day's close.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.03 per cent at 95.94.
Analysts told PTI that with no fresh triggers in the forex market, the rupee would be stuck in a tight range of 74.20-74.55. Further, inflation would be a major hindrance to the risk appetite. "So, the only focus remains on whether Fed members' express their worry over inflation, supporting the uptrend in DXY. But overall we expect the spot to continue trading in between 74-74.65," Emkay Global Financial Services told PTI.
BSE Sensex closed the day 314.04 points or 0.52 per cent lower at 60,008.33. The broader NSE Nifty fell 100.55 points or 0.56 per cent to close at 17,898.65.
Axis Bank was the top loser in the Sensex pack, shedding around 2 per cent, followed by Reliance Industries, Kotak Bank, Bharti Airtel, Titan, Dr Reddy’s and M&M.
On the other hand, Maruti, Asian Paints, PowerGrid and NTPC were among the gainers.
Brent crude future fell 0.87 per cent to $81.71/barrel.
Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 560.67 crore, according to exchange data.
(With inputs from PTI)
