Rupee rises 8ps to 83.79/$

Mumbai: The Indian rupee stayed firm for the second straight session and settled 8paise higher at 83.79 against the US dollar on Tuesday, buoyed by positive domestic equity markets, weak American currency and lower crude oil prices. Forex traders said, foreign fund outflow, however, resisted a sharp rise in the local unit. At the interbank foreign exchange, the rupee opened at 83.86 against the greenback and traded in the range of 83.76 to 83.88. The unit finally settled at 83.79 against the dollar, registering a gain of 8paise from its previous closing level.

On Monday, the rupee settled 8paise higher at 83.87 against the American currency. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee rose to the highest levels in nearly two and a half weeks on a weak US dollar and positive domestic markets. “A decline in crude oil prices also supported the rupee. However, FII outflows capped sharp gains.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.04 per cent to 101.68. Analysts said the US dollar declined to a seven-month low on rising odds of a rate cut by the Federal Reserve.