The rupee on Tuesday consolidated in a narrow range and settled 4 paise lower at 83.43 against the US dollar, weighed down by a strong dollar and elevated crude oil prices. Forex traders said a weak trend in domestic equities also dented investor sentiments.
At the interbank foreign exchange, the local unit opened at 83.37, then touched an intraday high of 83.34 and a low of 83.44 against the greenback. The rupee finally settled at 83.43, a fall of 4 paise over its previous close.
On Thursday last week, the rupee depreciated 6 paise to settle at 83.39 against the US dollar. Forex market was closed on Friday and Monday on account of ‘Good Friday’ and the annual account closing of banks, respectively.
“We expect the rupee to trade with a slight negative bias on strong US dollar and weak tone in domestic markets. Rising crude oil prices may also weigh on the domestic currency,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.
Traders may take cues from Job Openings and Labor Turnover Survey (JOLTS) and speeches by various US Federal Reserve officials. USD/INR spot price is expected to trade in the range of Rs 83.20 to Rs 83.60, Choudhary added. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent lower at 104.96.
Brent crude futures advanced 1.78 per cent to USD 88.98 per barrel.
