Rupee settles 1ps lower at 83.96/$

Mumbai: The rupee consolidated in a narrow range and settled for the day lower by 1paisa at 83.96 against US dollar on Thursday, after the Reserve Bank expectedly kept the benchmark interest rate and stance unchanged for the ninth straight policy meeting. Forex traders said weak domestic markets, surge in crude oil prices and foreign fund outflows weighed on the rupee. However, a decline in the US Dollar index prevented the local unit from declining sharply.

At the interbank foreign exchange market, the local unit opened at 83.94 and touched an intraday low of 83.97 and a high of 83.93 against the dollar during the session. It finally settled at 83.96 against the American currency, down 1paisa from its previous close. On Wednesday, the rupee consolidated in a narrow range and settled for the day lower by 3 paise at 83.95 against US dollar.

The local unit had slumped 37paise 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 selling pressure from foreign investors and weak domestic markets. Ongoing geopolitical tensions in the Middle East may also pressurise the rupee,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. However, weak US dollar may support the rupee at lower levels.