Rupee Rises 1ps To 84.38/$

Mumbai: The rupee moved in a narrow range and appreciated 1paisa to close at 84.38 against the US dollar on Wednesday, as persistent foreign fund outflows and a muted trend in domestic equities weighed on the local unit. The USD/INR pair is trading in a narrow range as strength of the American currency in the overseas market dented investor sentiments, while suspected intervention by the Reserve Bank of India (RBI) kept the rupee supported at lower levels, forex traders said. At the interbank foreign exchange, the rupee opened at 84.40 against the US dollar. During the session, the local currency touched a high of 84.37. It finally settled at 84.38, 1paisa higher than its previous close.

On Tuesday, the rupee fell 1paisa to a new lifetime low of 84.39 against the US dollar. According to Praveen Singh -- Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas -- the USD-INR pair may rise to Rs85 level in near term, though the intervention by the RBI may slow the pace. “Support is at 84.25/84 and resistance is at 84.50/84.75,” Singh added. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.05 per cent at 105.97.