Rupee rebounds 14ps to 83.37/$

Mumbai: The rupee recovered 14paise to close at 83.37 against the US dollar on Wednesday, tracking strong buying in domestic equities and lower crude oil prices in international markets. However, a surging greenback against major crosses overseas and fresh foreign fund outflows restricted gains in the local currency, forex traders said. At the interbank foreign exchange market, the local unit opened at 83.50 and touched the intra-day peak of 83.28 against the domestic unit during the session. It finally settled at 83.37 against the dollar, registering a gain of 14paise from its previous close.

On Tuesday, the domestic currency plunged 37 paise to settle at 83.51 against the dollar. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee appreciated as domestic markets recovered some losses of the previous day and reports of intervention by the RBI. “...a recovery in the US dollar and disappointing macroeconomic data capped sharp gains,” he said, adding that the rupee is expected to trade with a slight negative bias on recovery in the US dollar and selling pressure from foreign investors. India’s service sector growth eased to a five-month low in May amid fierce competition, price pressures and a severe heatwave, even as new orders from international markets expanded at the steepest pace in a decade, according to a monthly survey released on Wednesday.