Rupee rises 7ps to 83.38/$

Mumbai: The rupee appreciated 7paise to settle at 83.38 against the US dollar on Friday backed by renewed foreign fund inflows. Forex traders said the strength of the American currency in the overseas market, elevated crude oil prices and US dollar demand from oil marketing companies capped sharp gains for the local unit. At the interbank foreign exchange market, the local unit opened at 83.42 and hit the intraday high of 83.36 and a low of 83.49 against the greenback during the session. It finally settled at 83.38 against the dollar, registering a gain of 7paise from its previous close.

On Thursday, the rupee appreciated 12paise to settle at 83.45 against the US dollar. According to Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, rupee gained to 83.3750 earlier in the day on boost from inclusion of Indian bonds in the JP Morgan’s emerging markets bond index. However, a positive US dollar and a rise in crude oil prices capped sharp gains. “We expect the rupee to trade with a slight negative bias on the strong US dollar and a surge in crude oil prices. Dollar demand from oil marketing companies (OMCs) and importers may also weigh on the rupee,” Choudhary said.

Choudhary further noted that fresh foreign inflows and positive tone in the domestic equities may support the rupee.