Mumbai: The rupee pared initial gains and settled for the day almost flat at 83.49 against the US dollar on Friday, as muted domestic equities and rise in crude oil prices capped gains for the local unit. At the interbank foreign exchange market, the local unit opened at 83.48 and hit the intraday high of 83.45 and a low of 83.50 against the American currency during the session. It finally settled at 83.49 against the dollar, 1paisa higher than its previous close.

On Thursday, the rupee pared its initial losses and settled for the day on an almost flat note at 83.50 against the US dollar. Forex traders said rising crude oil prices weighed on investor sentiments and restricted the upside. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.96, lower by 0.16 per cent. “We expect the rupee to trade with a slight positive bias on the weak tone in the US dollar and FII inflows. However, a correction in the domestic markets and elevated crude oil prices may cap sharp upside,” said Anuj Choudhary.