Mumbai: The rupee stayed range-bound and settled 2paise lower at 83.51 against the US dollar on Wednesday amid rising crude oil prices overseas and selling in domestic equities. A softening American currency and inflow of foreign funds capped the fall in the local unit, forex traders said. At the interbank foreign exchange market, the rupee opened flat at 83.49 against the dollar and moved in a close range of 83.48 to 83.53 during the session. The local unit finally settled at 83.51 against the American currency, registering a loss of 2paise from its previous close.

The rupee had edged up 1paisa to close at 83.49 against the dollar on Tuesday. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee is expected to trade with a slight negative bias on weakness in domestic market and positive tone in the dollar. “Investors may remain cautious ahead of Fed Chair Jerome Powell’s testimony to the US Congress and inflation data tomorrow. USD-INR spot price is expected to trade in a range of Rs83.20 to Rs83.80,” he said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, eased 0.03 per cent to 104.77.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, the upcoming US inflation data is expected to increase volatility in the forex market, potentially influencing the rupee.