Rupee Rises 11ps To 83.75/$

Mumbai: The rupee appreciated by 11paise to settle at 83.75 against the US dollar on Tuesday amid a weaker greenback against major currencies and a decline in crude oil prices. The decline in wholesale inflation to a four-month-low and a strong domestic market pushed up the domestic unit, forex traders said. At the interbank foreign exchange market, the rupee opened at 83.87, down 1paisa from its previous close and traded in the range of 83-70 to 83.87 during the day. It settled at 83.75 against the US dollar, up 11paise from its previous close of 83.86.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said: "The rupee gained on Tuesday on positive domestic markets and weakness in the US dollar index. Domestic markets are trading near record highs. We expect the rupee to trade with a slight positive bias on firm tone in the domestic markets. Weak US dollar may also support the rupee." Choudhary added that USD-INR spot price is expected to trade in a range of Rs 83.60-83.95.

India's WPI inflation cooled off to 1.31 per cent in August, as against 2.04 per cent in July. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.15 per cent to 100.60. In the domestic markets, Foreign Institutional Investors (FIIs) turned net sellers in the capital markets on Monday, offloading shares worth Rs 1,634.98 crore, according

to exchange data.