Re settles on flat note

Mumbai: The rupee settled on a flat note on Monday at 83.31 against the US dollar, as the support from positive domestic equities was negated by the strength of the American currency in the overseas market. Forex traders said investor sentiments got a boost as crude oil prices retreated from their elevated levels, but the strength of the American currency in the overseas market weighed on the local unit and restricted the uptick. At the interbank foreign exchange market, the local unit opened at 83.27 against the greenback. The unit hit an intra-day high of 83.23 and a low of 83.33. The local unit finally settled at 83.31 against the dollar, unchanged from its previous close.

On Friday, the rupee appreciated 8paise to close at 83.31 against the US dollar as the Reserve Bank of India (RBI) kept the benchmark interest rate unchanged at 6.5 per cent for the seventh time in a row. "We expect the rupee to trade with a slight positive bias on the rise in risk appetite in global markets on reports that Israel has withdrawn its soldiers from Southern Gaza. FII inflows and strength in the domestic markets may also support the rupee. "However, a positive tone in the greenback may cap sharp gains. Investors may remain cautious ahead of inflation data from the US and India later this week. USDINR spot price is expected to trade in the range of Rs83.10 to Rs83.50," said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent higher at 104.37 on declining expectations of a rate cut by the US Federal Reserve following a strong jobs report and hawkish comments from Fed officials last week. On the domestic equity market front, Sensex advanced 494.28 points, or 0.67 per cent, to close at an all-time high of 74,742.50 points.