Rupee ends steady at 68.95 against US dollar ahead of Budget

The Indian rupee on Tuesday ended almost flat at 68.95 against the US dollar in a lacklustre trade as participants preferred to sit on the fence ahead of the Union Budget due on Friday.

At the interbank foreign exchange, the domestic unit opened at 69.02. During the day, the domestic unit witnessed a high of 68.93 and a low of 69.07 against the US dollar.

The domestic currency finally settled at 68.95 against the US dollar, down 1 paisa over its last close.

The Indian rupee Monday had closed at 68.94 against the US dollar.

“Rupee is trading 1 paisa lower against the US dollar with more focus on domestic factors than global. This week, market participants will be keeping an eye on the Union Budget and that could trigger volatility for the currency,” said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities.

Steady buying in domestic stocks and easing crude oil prices also supported the domestic unit, forex traders said.

Meanwhile, brent crude futures, the global oil benchmark, fell 0.18 per cent to USD 64.94 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 512 crore on Tuesday, as per provisional data.

Meanwhile, the 10-year government bond yield was at 6.84 per cent on Tuesday.

The 30-share index settled 129.98 points, or 0.33 per cent, higher at 39,816.48. The broader NSE Nifty too rose 44.70 points, or 0.38 per cent, to finish at 11,910.30.