Re further recovers as crude price falls

Mumbai: The rupee consolidated in a narrow range and settled five paise higher at 83.06 (provisional) against the US dollar on Thursday as crude oil price receded from its elevated level.

The rupee was also weighed down by a rising dollar index, following hawkish comments from US Federal Reserve officials, forex traders said.

Moreover, investors remained cautious ahead of the Bank of England and Bank of Japan policy decisions, they added. At the interbank foreign exchange market, the rupee opened at 83.16 against the US dollar and settled at 83.06 (provisional), registering a rise of 5 paise from its previous close. During the session, the domestic unit witnessed an intra-day high of 83.02 and a low of 83.17.

In the previous session, the rupee staged a sharp rebound from its lifetime low levels and surged by 21 paise to close at 83.11 against the US dollar. “Indian rupee headed south after a flat opening amid a hawkish signal from FOMC, which dragged the global risk-assets lower,” said Dilip Parmar, Research Analyst, HDFC Securities.

However, the rupee managed to end the session with minor losses supported by the retracement in the crude oil prices and probable central bank interventions, Parmar added. Market participants are in a wait-and-watch mode ahead of the Bank of England and Bank of Japan policy decision, he said. “The dollar is expected to bode well amid policy divergence and a better US macro environment compared to other developing nations,” Parmar said. The trend for USD/INR remains bullish, following broad-based strength in the greenback. The pair has resistance at 83.30 and support at 82.90, he added.