Mumbai, February 17 The rupee gained 2 paise to settle at 90.72 against the US dollar on Tuesday, supported by positive domestic equity markets and lower crude prices overseas.
However, a firm US currency weighed on the Indian currency and limited its gains, forex traders said.
In the interbank foreign exchange market, the rupee opened at 90.72 against the US dollar and traded within a narrow range, touching a high of 90.64 and a low of 90.78 during the day.
The unit finally ended the session at 90.72 against the US dollar, registering a gain of 2 paise from its previous closing level.
On Monday, the rupee settled 8 paise lower at 90.74 against the US dollar.
Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said that the rupee traded with a slight negative bias due to FII outflows and a strong dollar. However, a positive tone in the domestic markets and softening of crude oil prices cushioned the downside.
"Investors may now watch out for housing market and GDP data from the US this week. The USD-INR spot price is expected to trade in a range of Rs 90.50 to Rs 91," Choudhary said.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said: "The US-India trade deal has not translated into meaningful support so far, and limited intervention has kept the currency range-bound. Immediate support remains near 90.90, while resistance is placed around 90.25."
Meanwhile, the dollar index, which gauges the strength of the US dollar against a basket of six currencies, was trading 0.22 per cent higher at 97.03.
Brent crude, the global oil benchmark, was trading 0.83 per cent lower at USD 68.08 per barrel in futures trade.
On the domestic equity market front, the Sensex rose 173.81 points or 0.21 per cent to settle at 83,450.96, while the Nifty went up 42.65 points or 0.17 per cent to 25,725.40.
On Tuesday, foreign institutional investors turned net buyers and purchased equities worth Rs 995.21 crore, according to exchange data.
Government data released on Monday showed that the country's exports rose marginally by 0.61 per cent to USD 36.56 billion in January, while the trade deficit widened to a three-month high of USD 34.68 billion.
Imports rose 19.2 per cent - the highest so far this fiscal - to a three-month high of USD 71.24 billion in January, driven by a sharp rise in inbound shipments of gold and silver due to higher prices, the data showed.
