Rupee settles flat at 83.97/$

Mumbai: The rupee witnessed range-bound trading and settled for the day on a flat note at 83.97 against the US dollar on Tuesday, as weak domestic markets and a surge in crude oil prices weighed on investor sentiments. Forex traders said risk aversion in the global markets amid heightened geopolitical tension in the Middle East between Israel and Iran also dented sentiments. At the interbank foreign exchange market, the local unit traded in a tight range as it opened at 83.95 and finally settled at 83.97 against the American currency, unchanged from its previous close.

On Monday, the rupee settled for the day lower by 2 paise at 83.97 against the American currency. The local unit had slumped 37 paise to settle at an all-time low of 84.09 against the US dollar on August 5. “We expect the rupee to trade with a slight negative bias on risk aversion in the global markets amid heightened geopolitical tension in the Middle East between Israel and Iran. Rising crude oil prices and weak domestic markets may also weigh on the domestic currency,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. However, mixed-to-weak US dollar amid dovish comments from Fed speakers may support the rupee at lower levels.