Re trading in narrow range
Home currency falls 1 paisa to 83.52/$ ; USD-INR spot price is expected to trade in a range of Rs83.30-83.80
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Mumbai: The rupee consolidated in a narrow range and settled for the day lower by 1 paisa at 83.52 against US dollar on Monday, as the support from positive domestic equities was negated by strong American currency.Forex traders said with foreign investors buying US dollars and the Reserve Bank of India (RBI) selling the greenback, the USD/INR pair is expected to remain range-bound with a bit of a weakness bias. At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.51 and touched an intraday low of 83.53 during the day. The domestic unit finally settled for the day at 83.52, down 1 paisa from its previous close.
On Friday, the rupee closed at 83.51 against the American currency. “We expect the rupee to trade with a slight negative bias on the strong US dollar and weakness in the domestic markets. Continued selling by FIIs may further pressure the rupee. However, any bond-related dollar inflows may support the rupee at lower levels,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas. Traders may take cues from India’s inflation data. Investors may remain cautious ahead of inflation data from the US this week. USD-INR spot price is expected to trade in a range of Rs83.30-83.80, Choudhary added.
