Rupee settles 2 paise higher at 71.19 against USD on easing crude prices

The rupee strengthened by 2 paise to settle at 71.19 against the US dollar on Wednesday amid easing crude oil prices.

Forex traders said strengthening of the American currency and weak domestic equities dragged the local unit, however easing crude prices supported the rupee and restricted the fall.

The next trigger for the domestic currency will be the Union Budget and RBI Monetary policy, they said.

At the interbank foreign exchange market, the local currency opened on a positive note at 71.17. During the day, it saw a high of 71.16 and a low of 71.24.

The Indian currency finally settled at 71.19, higher by 2 paise against its previous close. The domestic unit had settled at 71.21 against the American currency on Tuesday.

"Rupee got support from the lower crude oil prices and foreign fund inflows. Foreign fund inflows heads for the fifth month in trot to USD 1.698 billion," said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.

Sharma further added that "We expect USDINR to trade between 70.80-71.60 levels till month end and the further course of action will depend on upcoming budget and RBI monetary policy".