Re closes 1ps higher at 83.72/$

Mumbai: The rupee consolidated in a narrow range and settled for the day higher by 1paisa at 83.72 against the US dollar on Wednesday, as the support from positive domestic equities was negated by month-end Dollar demand from importers. Forex traders said significant foreign fund outflows and overnight surge in crude oil prices weighed on the local unit. At the interbank foreign exchange market, the domestic currency opened 1paisa higher than the previous day’s close. It slipped to 83.75 during the day and settled for the day 1paisa higher at 83.72 against US dollar.

On Tuesday, the rupee closed flat at 83.73 against the American currency. “We expect the rupee to trade with a slight negative bias on month-end dollar demand from importers and oil marketing companies (OMCs). However, a positive tone in the domestic markets and weak US dollar may support the rupee at lower levels,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said. Any fresh intervention by the Reserve Bank of India (RBI) may also support the rupee, he said. “Investors may watch out for the Federal Open Market Committee (FOMC) meeting outcome on Wednesday and Bank of England’s monetary policy on Thursday. USD-INR spot price is expected to trade in a range of Rs 83.50 to Rs 84,” he said.