Rupee gains 10 paise to close at 82.28 against U.S. dollar

Forex traders said muted domestic equities and foreign fund outflows weighed on investor sentiments and restricted the gain

The rupee appreciated by 10 paise to close at 82.28 (provisional) against the U.S. dollar on December 9, tracking the weakening of the American currency in the overseas market.

Forex traders said muted domestic equities and foreign fund outflows weighed on investor sentiments and restricted the gains.

At the interbank foreign exchange market, the local unit opened at 82.30 and touched an intra-day high of 82.08 and a low of 82.33 against the greenback.

It finally settled at 82.28, registering a rise of 10 paise over its previous close of 82.38.

Forex traders said investors awaited the outcome of a slew of central bank meetings next week for additional clues on the pace of rate hikes.

"Focus will now be shifting to the FOMC policy statement. The central bank could raise rates by 50 bps and maintain a less hawkish stance," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

"We expect the USD-INR (Spot) to trade sideways and quote in the range of 82.20 and 82.80," Somaiya added.