Rupee rises 4ps to 83.89/$

Mumbai: The rupee traded in a narrow range and settled higher by 4paise at 83.89 against the American currency on Friday, as traders remained cautious ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium. Forex traders said weak US Dollar, foreign fund inflows and a positive tone in the domestic markets supported the rupee. However, overnight gains in crude oil prices capped sharp gains. At the interbank foreign exchange market, the local unit opened weak at 83.93 and touched an intraday high of 83.85 against the US dollar. The domestic currency finally settled at 83.89, 4paise higher from its previous close.

On Thursday, the rupee traded in a narrow range and settled lower by 3paise at 83.93 against the American currency. “We expect the rupee to trade with a slight negative bias as traders remain cautious ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium which could provide some cues on Fed’s path to cut interest rates. “Weak US and Asian markets and a recovery in crude oil prices may pressure the rupee while positive domestic markets may support the rupee at lower levels,” said Anuj Choudhary -- Research Analyst at Sharekhan by BNP Paribas.