Mumbai: The rupee consolidated in a narrow range and settled 2paise lower at 83.56 against US dollar on Friday, as positive domestic markets and a decline in crude oil prices supported the rupee, while strong US Dollar and FII outflows capped sharp gains.

Forex traders said rupee was seen resilient against the dollar, on hawkish Federal Open Market Committee (FOMC) meeting and commentary by the Fed Chair. At the interbank foreign exchange, the local unit opened at 83.54 and finally settled for the day lower by 2 paise at 83.56 against the American currency. On Thursday, the rupee settled for the day lower by 6paise at 83.54 against the US dollar.

“We expect the rupee to trade with a slight negative bias on the strong US Dollar and weak global markets. However, a positive tone in the domestic markets and expectations of fresh foreign inflows may support the rupee at lower levels,” Anuj Choudhary -- Research Analyst at Sharekhan by BNP Paribas -- said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.61, higher by 0.40 per cent.