Rupee trades flat against U.S. dollar amid gains in equities

Rupee edges up 1 paisa to 83.21 against U.S. dollar in restricted trade on Sept 28, as gains from domestic stocks offset by rising crude oil prices and U.S. dollar index. Fed officials flag possibility of further rate hikes, leading to elevated U.S. yields & weakening of yen.

The rupee edged up 1 paisa to 83.21 against the U.S. currency in a restricted trade on September 28 amid gains in domestic equities.

The Indian currency was almost trading flat in the early session as gains from firm domestic stocks were offset by a rise in crude oil prices and the U.S. dollar index remaining above the 106-mark against the leading currencies, Forex dealers said.

The rupee opened flat at 83.22 against the U.S. dollar and later moved in a range of 83.25 to 83.20 in morning deals. It was trading at 83.21 to U.S. dollar at 9.35 a.m., up by 1 paisa over the previous close.

The domestic unit settled at 83.22 on September 27 after a listless trade.

It traded in a narrow range on Wednesday despite broader gains in the dollar against its major crosses, Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said.

The hawkish tone in the recent Federal Reserve meeting has been confirmed by Fed officials in recent days, as they flagged the possibility that the central bank would need to raise interest rates further after pausing its rate-hiking cycle last week, he added.

Elevated U.S. yields have spelt trouble for the yen, which slipped to an 11-month low against the U.S. dollar.