Mumbai: The rupee depreciated 17paise against the US dollar and settled at 83.60 on Wednesday, weighed down by the strength of the American currency in the overseas market and elevated crude oil prices. However, a firm trend in domestic equities, wherein benchmark indices scaled new peaks, supported the local unit and restricted the downslide, forex traders said. At the interbank foreign exchange market, the local unit opened at 83.45 and hit the intraday high of 83.43 and a low of 83.61 against the greenback during the session. It finally settled at 83.60 against the dollar, 17paise lower than its previous close.

On Tuesday, the rupee appreciated 4paise and settled at 83.43 against the greenback. “We expect the rupee to trade with a slight negative bias on dollar demand ahead from oil importers as we are heading towards the end of the month. A strong dollar and elevated crude oil prices may also put downside pressure on the rupee,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. However, positive domestic markets and Foreign Institutional Investor (FII) and foreign inflows may support the rupee. USD/INR spot price is expected to trade in a range of Rs83.30 to Rs84, Choudhary added.