Rupee falls 6 paise to end at 83.28 against US dollar

Mumbai: The rupee consolidated in a narrow range and settled 6 paise lower at 83.28 (provisional) against the US dollar on Friday, as sustained foreign fund outflows weighed on investor sentiments.

Forex traders said a positive trend in domestic equities supported the local unit at lower levels and restricted the downside. At the interbank foreign exchange market, the local unit opened at 83.22 and touched a low level of 83.29 against the greenback. It finally settled at 83.28 (provisional) against the dollar, registering a loss of 6 paise from its previous close.

On Thursday, the rupee had settled at 83.22 against the US dollar. “The domestic currency, Asia’s second best performer this year, continues to be range-bound as risk appetite remains strong on the US Federal Reserve standing pat on interest rates,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

Singh further said that the Indian Central Bank continues to defend the domestic currency from weakening beyond 83.29. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.15 per cent lower at 105.96. Global oil price benchmark Brent crude declined 0.15 per cent to USD 86.72 per barrel. On the domestic equity market front, Sensex climbed 282.88 points or 0.44 per cent to settle at 64,363.78.

The Nifty rose 97.35 points or 0.51 per cent to 19,230.60. Foreign Institutional Investors sold equities worth Rs 1,261.19 crore on Thursday, according to exchange data. On the domestic macroeconomic front, the services sector growth in India fell to a seven-month low in October on softer increase in output and new business, amid competitive conditions and price pressures. The seasonally adjusted S&P Global India Services PMI Business Activity Index fell to 58.4 in October, from a 13-year high of 61 in September, signalling the slowest rate of expansion since March.