Rupee rises 8ps to 83.87/$

Mumbai: The Indian rupee appreciated by 8paise to close at 83.87 against the US dollar on Monday, supported by a weak US dollar and a decline in crude oil prices. Forex traders said fresh foreign fund inflows boosted investor sentiments. At the interbank foreign exchange, the rupee opened at 83.88 against the greenback, then gained ground and touched an intra-day high of 83.84, and a low of 83.93 against the American currency. The local currency finally settled for the day at 83.88 against the American currency.

On Friday, the rupee moved in a tight range and settled just 1paisa lower at 83.95 against the American currency. Over the past shortened week, the rupee showed minimal fluctuation and narrowly steered clear of the critical 84-mark. “We expect the rupee to trade with a slight positive bias on rise in risk appetite in global markets and a weak US dollar. Softening of crude oil prices may also support the rupee,” said Anuj Choudhary -- Research Analyst at Sharekhan by BNP Paribas.

Traders said geopolitical tension in the Middle East may cap a sharp upside for the local unit.