Rupee reeling under pressure
image for illustrative purpose
New Delhi: The rupee pared initial gains to settle two paise lower at 83.03 (provisional) against the US dollar on Thursday, weighed down by a surge in crude oil prices and strong American currency overseas.
However, a positive trend in domestic markets cushioned the downside for the local unit, forex traders said. At the interbank foreign exchange market, the local unit opened at 82.98 against the US dollar and moved in a range of 82.93 and 83.04. The rupee finally settled at 83.03 (provisional) against the US dollar, down two paise from its previous close.
On Wednesday, the rupee closed at 83.01 against the US currency. “The Indian rupee fell on Thursday on a positive US Dollar and rising crude oil prices. This may impact the external payments. However, the positive tone of domestic equities prevented a sharp fall in the domestic currency. The US Dollar gained on hotter than expected CPI raised rate hike concerns,” said Anuj Choudhary, research analyst at Sharekhan by BNP Paribas.
