Rupee pairs losses to settle flat at 84.29 against US dollar

     Mumbai, Nov 26 (PTI) Rupee paired all its intra-day losses and settled flat at 84.29 against US dollar on Tuesday on the back of sustained inflow of foreign funds in domestic equity markets, resisting pressure from a stronger greenback.
     Forex traders said US President elect Donald Trump's comments that he would impose additional 10 per cent tariffs on Chinese goods and impose a 25 per cent levy on imports from Mexico and Canada has affected risk sentiment.
     Traders are also awaiting the Federal Open Market Committee (FOMC) minutes of the November 7 meeting for further cues.
     At the interbank foreign exchange, the rupee opened at 84.27 and touched an intra-day high of 84.22 and low of 84.35 against the greenback. The unit ended the session at 84.29 against the dollar, the previous session's closing level.
     On Monday, the rupee appreciated 12 paise to close at 84.29 against US dollar.
     "Traders look forward to the FOMC minutes of the November 7 meeting to be released later tonight. The USD-INR pair may continue to trade in the 84-84.50 in the short term. Interim support is at 84.11," said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.
     Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.06 per cent at 106.87.
     Brent crude, the global oil benchmark, rose 0.79 per cent to USD 73.59 per barrel in futures trade.
     The overall strength of the American currency and elevated crude oil prices are likely to strain India's trade balance, creating challenges for the rupee, forex traders said.
     In the domestic equity market, the 30-share BSE Sensex fell 105.79 points, or 0.13 per cent, to close at 80,004.06 points, while Nifty fell 27.40 points, or 0.11 per cent, to settle at 24,194.50 points.
     Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the rupee was volatile as the dollar maintained a sideways movement near 107, and crude oil's recovery contributed to the currency's fluctuation.
     "The rupee's immediate range is anticipated between 84.10 and 84.45, with market sentiment and dollar index movement playing a key role in driving further action," he said.
     Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, purchasing shares worth Rs 1,157.70 crore, according to exchange data.
     After remaining net sellers for the past several weeks, FIIs turned net buyers on Monday and bought equities worth 9,947.55 crore.

(This story has not been edited by THE WEEK and is auto-generated from PTI)