Rupee settles 2ps lower at 83.75/$

Mumbai:The rupee settled 2paise lower at 83.75 against the US dollar in a range-bound trade on Friday as massive sell-offs in domestic as well as global equity markets negated gains from a weak American currency. The Indian currency resisted the fall due to a sharp decline in the dollar after the latest US data showed slower manufacturing growth in the world’s largest economy, forex traders said. Foreign capital inflows also favoured the local currency, they said. At the interbank currency exchange, the domestic currency opened at 83.74 and traded in the narrow range of 83.72 and 83.76 against the greenback during the session. The unit finally settled at 83.75 against the dollar, registering a loss of 2paise from the previous closing level.

On Thursday, the rupee declined 5paise to settle at 83.73 against the US dollar. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said a slight decline in the US dollar amid disappointing economic data from the US may prevent a sharp fall in the rupee. Any fresh intervention by RBI may also support the rupee. “Traders may take cues from US non-farm payrolls data which is expected weaker than the previous month’s reading. USD-INR spot price is expected to trade in a range of Rs83.50 to Rs84,” Choudhary added. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.27 per cent to 103.92.

In the domestic equity market, Foreign institutional investors were net buyers in the capital markets on Thursday and bought shares worth Rs2,089.28 crore, according to exchange data.