Re falls 3ps to 83.37/$

Mumbai: The rupee edged 3 paise lower to close at 83.37 against the US dollar on Friday, tracking higher demand for US dollars from importers and a weak tone among Asian currencies.

Forex traders said a muted trend in domestic equities also weighed on the local unit. At the interbank foreign exchange market, the local unit opened at 83.33 and touched an all-time low of 83.38 against the greenback. It finally settled at 83.37 against the dollar, registering a fall of 3 paise from its previous close. On Thursday, the rupee settled at 83.34 against the American currency. The Indian rupee depreciated on Friday on demand for dollars from importers and weak tone in Asian currencies.

However, a softness in the US Dollar and a decline in crude oil prices cushioned the downside, Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said. “We expect the rupee to trade with a slight negative bias due to weak global markets and expectations of a recovery in the US Dollar index. However, IPO-driven Dollar inflows and a weak tone in crude oil prices may support the local currency. “Traders may take cues from PMI data out of the US today evening. USD-INR spot price is expected to trade in a range of 83.10 to 83.70,” he said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.18 per cent lower at 103.73.