Rupee settles 1ps higher at 83.89/$

Mumbai: The rupee pared its initial gains and settled for the day on a flat note, rising just 1paisa to 83.89 against the American currency on Monday, weighed down by a surge in crude oil prices. Forex traders said the Indian rupee gained in morning trade on rise in domestic markets and a weak US Dollar. However, a surge in crude oil prices capped sharp gains for the local unit. At the interbank foreign exchange market, the local unit opened at 83.83 and touched an intra-day high of 83.80 against the US dollar and a low of 83.91. The domestic currency finally settled at 83.89, 1paisa higher from its previous close.

On Friday, the rupee traded in a narrow range and settled higher by 3paise at 83.90 against the American currency. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07 per cent higher at 100.78. The US dollar had witnessed a sharp correction and fell to the lowest level since July 2023, on dovish comments by Fed Chair Jerome Powell at the Jackson Hole Symposium. “We expect the rupee to trade with a slight positive bias on risk in global risk sentiments amid dovish Fed speak and rising expectations of a rate cut by the Fed in September. However, geopolitical tensions in the Middle East and rising crude oil prices may cap sharp upside,” said Anuj Choudhary -- Research Analyst at Sharekhan by BNP Paribas.