Rupee settles 4ps lower at 83.94/$

Mumbai: The rupee traded in a narrow range and settled lower by 4 paise at 83.94 against the American currency on Thursday, as relentless dollar demand from importers and relentless foreign fund outflows dampened investor sentiments. However, a positive trend in domestic equities and lower global crude oil prices supported the domestic currency and restricted its fall, forex traders said. At the interbank foreign exchange market, the local unit opened weak at 83.93 and touched an intraday low of 83.97 against the US dollar. The domestic currency finally settled at 83.94, 4paise lower from its previous close. On Wednesday, the rupee fell 13paise to 83.90 against the US dollar.

Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said:”We expect the rupee to trade with a slight negative bias on outflows by foreign investors and demand for the greenback by importers. However, a positive tone in the domestic markets and declining global crude oil prices may support the rupee.” Traders will now take cues from the weekly unemployment claims, existing home sales and PMI data from the US. “Investors may remain cautious ahead of Fed Chair Jerome Powell’s speech at Jackson Hole Symposium for any cues on rate cuts by the central bank.