The rupee stayed flat at 82.90 against the US dollar in early trade on Wednesday, resisting downward pressure from a stronger American currency and volatile crude oil prices in the overseas markets.
The local unit was also dragged down by the negative sentiment in the equity markets, however, it found support due to some fresh inflow of foreign funds, forex traders said.
At the interbank foreign exchange, the domestic currency opened at the previous day’s closing level of 82.90 and oscillated between 82.89 and 82.91 against the greenback.
On Tuesday, the rupee settled flat at 82.90 against the US dollar.
Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services, said the rupee traded in a narrow range and volatility remained low despite weakness in the dollar against its major crosses.
The restricted movement in the Indian currency was attributed to the services PMI (Purchasing Managers’ Index) data in the US, which showed the sector’s growth in February fell short of expectations.
