Rupee trades flat against US dollar

The rupee opened on a flat note against the US dollar on Wednesday amid rising crude oil prices and persistent foreign capital outflows.

Forex traders said a strengthening American currency and muted domestic equities weighed on the local unit and restricted the appreciation bias.

At the interbank foreign exchange, the domestic unit opened at 82.84 against the dollar, then fell to quote at 82.86, registering a rise of just 1 paisa over its previous close.

On Tuesday, the rupee closed at 82.87 against the dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.14 per cent to 104.32.

Brent crude futures, the global oil benchmark, advanced 0.11 per cent to USD 84.42 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 77.87 points or 0.13 per cent lower at 60,849.56. The broader NSE Nifty rose 25.65 points or 0.14 per cent to 18,106.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 867.65 crore, according to exchange data.

"Month-end exporter selling could keep upside in USD/INR capped. Rupee is likely to trade in a 82.60-82.90 range with sideways price action," IFA Global Research Academy said in a research note.

Meanwhile, China's reopening is raising concerns that it would fuel global inflation further.

From January, China will practically abandon its three-year-old zero Covid policy and its international isolation, fully opening its airports and ports for travel and trade amid a massive coronavirus outbreak in the country.