Mumbai, February 25 The rupee remained within a trading range and closed with a gain of 4 paise at 90.91 against the US dollar on Wednesday, supported by foreign fund inflows and a weak dollar.
However, the currency faced pressure due to higher crude oil prices and trade-related uncertainties, according to forex traders.
At the interbank foreign exchange market, the rupee opened at 90.94 against the dollar and traded within a narrow range of 90.96-90.88, before settling at 90.91 against the greenback, registering a gain of 4 paise from its previous close.
On Tuesday, the rupee closed 6 paise lower at 90.95 against the US dollar.
Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said that the rupee is expected to trade with a negative bias amid geopolitical tensions between the US and Iran, as well as the ongoing trade tariff uncertainty.
"Negotiations between the US and Iran are likely to take place on Thursday, and markets now expect that the US may opt for a limited attack on Iran," he said.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, market participants remained cautious amid fresh uncertainty around the US trade framework.
"After the US court dismissed parts of Trump's tariff structure, renewed statements from Trump regarding potential consequences for countries revisiting trade terms have kept currency markets on edge," Trivedi said, adding, "For now, the rupee remains within a range with support seen near 91.25 and resistance around 90.50, awaiting clearer direction from global trade developments and dollar index movement."
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent down at 97.79.
"A soft dollar, along with RBI intervention, may support the rupee at lower levels. The USD-INR spot price is expected to trade in a range of Rs 90.70 to Rs 91.20," Choudhary said.
Brent crude, the global oil benchmark, rose 0.06 per cent to USD 70.76 per barrel in futures trade.
The domestic equity markets rebounded on Wednesday with the Sensex climbing 50.15 points to settle at 82,276.07, while the Nifty was up 57.85 points to 25,482.50.
On Wednesday, foreign institutional investors purchased equities worth Rs 2,991.64 crore, according to exchange data.
