Rupee trades in narrow range against US dollar in early trade

The rupee started on a flat note on Tuesday tracking the strength of the dollar in the overseas market and elevated crude oil prices.

At the interbank foreign exchange, the rupee opened at 75.54 against the American dollar and moved in a narrow range. It touched an early high of 75.47 in initial deals.

On Monday, the rupee started the financial year 2022-23 on a bullish note. It spurted 21 paise to close at a one month-high of 75.53 against the US dollar.

Meanwhile, global oil benchmark Brent crude futures rose 1.27 per cent to USD 108.90 per barrel as the geopolitical uncertainty from the prolonged conflict in Ukraine persisted.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 99.02 as the prospect of increased sanctions on Russia pushed investors to the safety of the greenback.

On the domestic equity market front, the 30-share Sensex was trading 248.08 points or 0.41 per cent lower at 60,363.66, while the broader NSE Nifty slipped by 55.45 points, or 0.31 per cent, to 17,997.95.

Foreign institutional investors remained net buyers in the capital market on Monday as they purchased shares worth Rs 1,152.21 crore, according to stock exchange data.

"Oil back near 110 and lower opening for USD-INR at 75.45 indicates the amount of inflows in the system. Range of 75.20 to 75.60 as we await for US Fed minutes due on Wednesday and MPC meeting decision on April 8," Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, said.

Bhansali also noted that "fighting in Ukraine seems to have died down for the moment but it can flare up as the West keeps imposing sanctions on Russia.