Mumbai, Nov 26 (PTI) The rupee closed flat at 89.22 against the US dollar in a range-bound trade on Wednesday, as firm domestic equities and a slide in global crude prices offset the impact of a strengthening greenback against major crosses.

Besides, concerns over geopolitical developments sapped risk appetite in the market, pushing investors towards safe-haven assets, forex traders said.

At the interbank foreign exchange market, the rupee opened at 89.24 and moved in a close range of 89.17-89.28 against the dollar. The unit finally settled unchanged at 89.22 against its previous closing level.

On Tuesday, the rupee settled 6 paise lower at 89.22 against the greenback.

"The rupee experienced a depreciation, after two days of gains, driven by a recovery in the dollar index and a strength in imported commodity prices. Despite the high expectation of a Federal Reserve interest rate cut in the upcoming December meeting, the bias continues to favour the greenback," Dilip Parmar, Research Analyst, HDFC Securities, said.

Meanwhile, gold prices surged Rs 1,200 to hit near a two-week high of Rs 1,30,100 per 10 grams in the national capital on Wednesday, tracking a rally in the international markets, according to the All India Sarafa Association.

Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, said the rupee is expected to trade with a slight positive bias on rising odds of an interest rate cut by the US Federal Reserve in December and a rise in risk appetite in global markets.

"However, importer demand for dollars may cap sharp upside. USD-INR spot price is expected to trade in a range of Rs 89 to Rs 89.50," he added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12 per cent to 99.70.

Brent crude, the global oil benchmark, fell 0.13 per cent to USD 62.40 per barrel in futures trade.

On the domestic equity market front, the Sensex soared 1,022.50 points, or 1.21 per cent, to settle at 85,609.51, while Nifty climbed 320.50 points, or 1.24 per cent, to 26,205.30.

Foreign institutional investors purchased equities worth Rs 4,778.03 crore on a net basis on Wednesday, according to exchange data. PTI HVA BAL BAL