Rupee gains 10 paise to close at 82.71 against US dollar as it retreats

The rupee appreciated 10 paise to close at 82.71 (provisional) against the US dollar, as the greenback retreated from its elevated levels

The rupee appreciated 10 paise to close at 82.71 (provisional) against the US dollar on Tuesday, as the greenback retreated from its elevated levels.

At the interbank foreign exchange market, the local currency opened at 82.74 and witnessed a high of 82.59 and a low of 82.79.

It finally settled at 82.71 against the American currency, registering a rise of 10 paise over its previous close amid a positive trend in domestic equities.

On Monday, the rupee had settled 34 paise lower at 82.81.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.49 per cent to 110.98.

Global oil benchmark Brent crude futures rose 1.42 per cent to USD 94.13 per barrel.

"Rupee consolidated in a narrow range ahead of the important events that are lined up," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

For the first time since the implementation of the monetary policy framework in 2016, the Reserve Bank will submit a report to the government on its failure to keep the retail inflation rate below 6 per cent for three consecutive quarters beginning January 2022.

The central bank has called a special meeting of its Monetary Policy Committee (MPC) on November 3.

The US Fed is expected to raise rates by another 75 bps on Wednesday and further hawkish statements could extend gains for the greenback.

Pound and Euro recovered last week and the BoE policy statement that will be released this week will be important for these major crosses, Somaiya added.

On the domestic equity market front, the 30-share BSE Sensex advanced 374.76 points or 0.62 per cent to end at 61,121.35, while the broader NSE Nifty gained 133.20 points or 0.74 per cent to 18,145.40.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 4,178.61 crore, according to exchange data.

Meanwhile, manufacturing activities in India remained robust and price pressures were contained in October as new orders and production rose, according to a monthly survey released on Tuesday.

The seasonally-adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) was up from 55.1 in September to 55.3 in October.