Re rises 2ps to 83.12/$

Mumbai: The rupee appreciated 2 paise to settle at 83.12 against the US dollar on Thursday, tracking a weak American currency against major rivals overseas. A weak trend in domestic equity markets and rising crude oil prices kept the movement of the domestic currency restricted, forex traders said. At the interbank foreign exchange, the domestic currency opened at 83.16 and traded in the range of 83.10 to 83.18 against the greenback. The unit finally settled at 83.12 against the dollar, registering a gain of 2 paise over its previous close.

On Wednesday, the rupee settled 2 paise lower at 83.14 against the US dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.15 per cent lower at 103.05 on Thursday. Analysts said the dollar retreated after the US data released on Wednesday showed increased retail sales in the country, reflecting sustained economic growth and dashing the financial market’s hope of an interest rate cut by the Federal Reserve.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said: “US dollar softened on Thursday on positive global markets. US retail sales and industrial production data topped forecasts, which trimmed rate cut expectations by the Fed in March 2024.”