Rupee pares initial losses; settle 11 paise up at 71.43 against USD

The rupee recovered from initial losses to settle 11 paise higher at 71.43 against the US currency on Wednesday, tracking gains in domestic equity markets and softening crude oil prices.

Foreign fund inflows also supported the local currency, forex trader said.

At the interbank foreign exchange market, the rupee opened at 71.60 against the US dollar. During the day, the domestic unit fluctuated between a high of 71.36 and a low of 71.71.

On Tuesday, the domestic unit had settled at 71.54.

"Strong equity markets, FII inflows, lower Brent crude prices and ICE Dollar Index helped the rupee recoup some of the losses seen on the previous day," said V K Sharma, Head - PCG & Capital Market Strategy, HDFC securities.

Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private Ltd said, "The rupee traded in a range as market participants remained cautious ahead of the important Brexit summit scheduled later this week. On the domestic front, focus will now shift to RBI meeting minutes that will be released on Friday and dovish outlook could keep the rupee under pressure."