Rupee Rises 4ps To 83.88/$
Expect the local unit to trade with a slight positive bias on continued weakness in the US dollar ahead of the FOMC meeting this week
Mumbai: The rupee witnessed range-bound trade and settled for the day higher by 4 paise at 83.88 against the US dollar on Monday supported by weak American currency and significant foreign fund inflows, while firm crude oil prices capped sharp gains. Forex traders said market participants are eagerly awaiting cues from the US Fed policy on Wednesday, with a rate cut all but certain. However, the magnitude of the cut remains uncertain. Moreover, the rupee continues to hold steady within a well-defined range on active intervention by the Reserve Bank of India (RBI), they added. At the interbank foreign exchange market, the local unit opened at 83.89 and witnessed an intraday high of 83.87 and a low of 83.90 against the American currency. The domestic unit finally settled for the day at 83.88, higher by 4paise over its previous close, amid a positive trend in domestic equities.
On Friday, the local unit settled higher by 4paise at 83.92 against the US dollar. “We expect Indian rupee to trade with a slight positive bias on continued weakness in the US dollar ahead of the FOMC meeting this week,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.