Mumbai, February 18 The rupee rose by 5 paise to 90.67 against the US dollar on Wednesday, driven by a decline in global crude oil prices and inflows from foreign investors.
However, a stronger US dollar and a weak start to the day in the domestic equity markets limited the sharp gains in the local currency, forex traders said.
At the interbank foreign exchange market, the rupee opened at 90.60 but lost some ground, trading at 90.67 against the US dollar, up by 5 paise from its previous close.
The rupee gained 2 paise to close at 90.72 against the US dollar on Tuesday.
"The RBI sold dollars at 90.78, ensuring that the rupee closed near the Monday closing, while FPIs were net buyers of equities yesterday (Tuesday)," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
He expects the rupee to remain in the range of 90.40-90.80 today.
Meanwhile, the dollar index, which measures the strength of the US dollar against a basket of six currencies, was trading at 97.24, up by 0.10 per cent.
"The dollar index was slightly higher, and analysts expect a near-term rebound after a prolonged slump. Strong US growth and foreign investment interest supported the dollar," Bhansali added.
Brent crude, the global benchmark for oil, was trading at USD 68.40 per barrel in futures trade, down by 0.36 per cent.
On the domestic equity market front, the Sensex fell by 77.56 points to 83,373.40 in early trade, while the Nifty declined by 26.25 points to 25,699.15.
According to exchange data, foreign institutional investors turned net buyers and purchased equities worth Rs 995.21 crore on Tuesday.
