Rupee rebounds by 24 paise to 83.08/USD

Halting 4-Session Losing Streak

♦ Re traded in 83.27-83.06 range

♦ RBI intervention supported home currency

♦ Local unit at all-time low of 83.32 on Monday

♦ Dollar index rose 0.14% to 104.68

Staging an impressive rebound from its lifetime low levels, the rupee surged by 24 paise to end at 83.08 (provisional) against the US dollar on Wednesday, aided by losses in global crude prices and a weak dollar ahead of the US Federal Reserve’s policy decision.

Besides, possible intervention by the central bank to check volatility in currency markets also helped the domestic unit, forex traders said. Halting its four-session losing streak at the interbank foreign exchange, the domestic unit opened strong at 83.22 against the dollar and traded in the range of 83.27-83.06 against the Greenback. The rupee finally closed at 83.08 against the dollar, registering a gain of 24 paise from its previous close. In the previous session on Monday, the rupee had settled at an all-time low of 83.32 against the dollar. Currency markets were closed on Tuesday on account of Ganesh Chaturthi. “The recent rise in crude oil prices had raised concerns about inflation and these concerns were likely to be addressed in the US Federal Reserve’s statement.

“The dollar also traded weaker, and there was profit booking observed in crude oil prices, which declined from $92.40 to $89.50. These factors contributed to the rupee’s gains after five consecutive days of losses. The trading range for the rupee is expected to be between 82.75 and 83.35,” said Jateen Trivedi, V-P (research analyst) at LKP Securities.

The dollar index, which gauges the Greenback’s strength against a basket of six currencies, rose 0.14 per cent to 104.68.