Rupee falls 4ps to 83.96/$
USD-INR spot price is expected to trade in a range of Rs83.75 to Rs84.20
image for illustrative purpose
Mumbai: The rupee consolidated in a narrow range and settled for the day lower by 4paise at 83.96 against US dollar on Wednesday, weighed down by a recovery in the US dollar and geopolitical tensions in the Middle East. Forex traders said the Indian rupee depreciated on Wednesday on a strong US dollar and positive crude oil prices. However, strength in the domestic markets cushioned the downside. At the interbank foreign exchange market, the local unit opened at 83.86 and touched an intraday low of 83.97 against the dollar during the session. It finally settled at 83.96 against the American currency, down 4paise from its previous close.
On Tuesday, the rupee recovered from its all-time low level and settled for the day 17paise higher at 83.92 against the US dollar. The local unit had slumped 37 paise to settle at an all-time low of 84.09 against the US dollar on Monday. “We expect the rupee to trade with a negative bias on a recovery in the US dollar and geopolitical tensions in the Middle East. However, positive global equities may support the rupee at lower levels,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. Any further intervention by the Reserve Bank may also support the rupee. Investors may watch out for RBI’s monetary policy decision.
