Rupee settles flat at 83.20/$
image for illustrative purpose
Mumbai: The rupee paired all its early gains to end on a flat note at 83.20 against the US dollar amid increased month-end dollar demand from importers and volatile crude oil prices. At the interbank foreign exchange, the domestic currency opened at 83.14, touched the peak of 83.10 and hit the lowest level of 83.22 against the greenback during intra-day deals. The local unit closed the session at Thursday's closing level of 83.20 against the dollar. The domestic currency jumped 14 paise on Thursday. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.13 per cent at 101.36 on Friday.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the US dollar recovered slightly on short coverings but declined again on expectations of interest rate cuts by the US Federal Reserve. The rupee is likely to trade with a slight positive bias on the weak tone of the US dollar and declining crude oil prices. Fresh foreign inflows may also support the domestic currency, he added.
“Month-end dollar demand from OMCs and importers may weigh on the rupee at higher levels. Traders may take cues from India's fiscal deficit and Chicago PMI data from the US. USD-INR spot price is expected to trade in a range of Rs82.90 to Rs83.50,” Choudhary added.
