Re settles flat at 83.25/USD
The domestic currency traded on flat note on strong US dollar and selling pressure from foreign funds
image for illustrative purpose
Mumbai: The rupee settled flat at 83.25 against the US dollar on Monday, as sustained foreign fund outflows and the strength of the American currency in the overseas market weighed on investor sentiments.
Forex traders said the Indian rupee traded on a flat note with a slight negative bias on strong US dollar and selling pressure from foreign funds. However, a positive tone in domestic equities and a decline in crude oil prices cushioned the downside.
US dollar gained on safe-haven demand as Israel expanded its ground operations in Gaza. At the interbank foreign exchange, in a range-bound trade the rupee opened at 83.25 and finally settled at the same level against the American currency, even as the domestic equity market made a smart recovery and ended the day on a positive note.
During the day, the rupee witnessed an intra-day high of 83.24 and a low of 83.27 against the greenback. On Friday, the rupee settled at 83.25 against the US dollar.
“We expect the rupee to trade with a slight negative bias on geopolitical uncertainty in the Middle East, which may lead to safe-haven demand for US dollar,” said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.
