Rupee Settles Flat At 83.99/$

Mumbai: The rupee pared its initial gains and settled on a flat note at 83.99 against the US dollar on Monday on selling pressure from foreign funds and weak tone in the domestic markets. Forex traders said elevated crude oil prices and escalating tensions between Israel and Iran weighed on the local unit, while all-time high forex reserves boosted investor sentiments. At the interbank foreign exchange, the rupee opened at 83.96 against the US dollar and touched an intra-day high of 83.95 and a low of 83.99. The domestic currency finally ended the day at 83.99, unchanged from its previous closing level. “We expect the rupee to trade with a negative bias on selling pressure from foreign funds and weak tone in the domestic markets. Escalating tensions between Israel and Iran may further pressurise the rupee,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. Choudhary said traders may take cues from comments by US Fed officials. “Investors may remain cautious ahead of the RBI’s monetary policy meeting outcome on Wednesday,” he said, adding that USD-INR spot price is expected to trade in a range of Rs 83.80-84.20.