Re gains 17 ps at 83.17/$ on weak US dollar

Mumbai: The rupee rebounded after two straight days of fall to settle 17 paise higher at 83.17 against the US dollar on Thursday, amid a weak American currency overseas and a rally in domestic equity markets.

The inflow of foreign funds and a downward trend in crude oil prices also supported the Indian currency, forex traders said. At the interbank foreign exchange, the domestic currency opened at 83.33 and traded in a range of 83.16-83.34 against the greenback. The local unit finally settled at 83.17, registering a gain of 17paise over its previous close.

The rupee had lost 18paise in the previous two sessions. On Wednesday, the domestic currency settled 15paise lower at 83.34 against the dollar, a day after closing at a loss of 3paise. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee appreciated on the weak US dollar and a surge in domestic markets. Choudhary said the rupee is likely to trade with a slight positive bias on fresh foreign inflows and an extended decline in the US dollar. Also, “traders may take cues from weekly unemployment claims data from the US. USD-INR spot price is expected to trade in a range of Rs82.90 to Rs83.50.”