Rupee rises 2ps to 83.95/$

Mumbai: The rupee traded in a narrow range to settle 2paise higher at 83.95 against the American currency on Wednesday, helped by a sharp decline in the US Dollar against major currencies overseas. Forex traders said a mixed-to-positive tone in the domestic market also supported the rupee. However, foreign fund outflows and geopolitical tensions in the Middle East restricted the rise in the local unit. At the interbank foreign exchange market, the local unit opened at 83.90 but soon fell into the negative zone and touched an intra-day low of 83.97 against the American currency. The domestic unit finally settled at 83.95 against the American currency, 2paise higher from its previous close.

On Tuesday, the rupee settled for the day on a flat note at 83.97 against the US dollar. “We expect the rupee to trade with a slight negative bias on elevated commodity prices and heightened geopolitical tension in the Middle East between Israel and Iran. “However, the weak Dollar and rising odds of a rate cut by the US Fed may support the rupee. Positive global markets may also support the rupee at lower levels,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.