Rupee may trade in 95-96/$ range

Mumbai: The rupee pared initial gains and settled for the day lower by 11paise at 95.55 against the US dollar, on a strong American currency and weak domestic markets.

Forex traders said the broad strength of the American currency in the overseas market negated the support from easing crude oil prices. While no final agreement has been reached, the fact that negotiations are continuing has reduced fears of a prolonged disruption to global oil supplies, forex traders said.

At the interbank foreign exchange, the rupee opened at 95.50, then touched an intraday high of 95.40 and a low of 95.56 and finally settled for the day at 95.55 against the greenback, lower by 11paise from its previous close. On Tuesday, the rupee settled for the day higher by 26 paise at 95.44 against the US dollar. The Indian foreign exchange market was closed on Wednesday on account of Id-e-Milad. According to forex traders, market participants will be closely monitoring US Fed Chair Kevin Warsh’s speech at the Jackson Hole Symposium.

According to Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities, the rupee’s story this month is really the story of the flows.