Re settles on flat note

Mumbai: The rupee consolidated in a narrow range and settled for the day higher by one paisa at 83.30 against the US dollar on Wednesday, as the support from positive domestic equities was negated by rising American currency.

Forex traders said elevated crude oil prices and significant foreign fund outflows in the international market dented investors’ sentiments.

At the interbank foreign exchange market, the local unit opened at 83.29 against the greenback. The unit hit an intra-day high of 83.26 and a low of 83.33 against the greenback. The domestic unit finally settled at 83.30 (provisional) against the dollar, 1 paisa higher from its previous close. On Tuesday, the rupee closed at 83.31 against the American currency.

Forex traders said the rupee is expected to trade with a slight positive bias on improved global risk sentiments and easing of geopolitical tensions in the Middle East. However, any fresh aggressions in the Middle East may cap gains for the local unit. Brent crude futures, the global oil benchmark, fell 0.34 per cent to $88.12 per barrel. Geopolitical risks in the Middle East and talks of fresh energy sanctions on Iran could see some occasional hiccups in prices to move higher.