Rupee rises 7 paise to close at 83 against US dollar

The rupee appreciated 7 paise to close at 83 (provisional) against the US dollar on Monday, on softness in the American currency and easing crude oil prices.

However, weak domestic markets and foreign fund outflows capped sharp gains, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.01 against the greenback. The unit hit an intra-day high of 82.98 and a low of 83.02.

The local unit finally settled at 83 (provisional) against the dollar, higher by 7 paise from its previous close of 83.07.

“We expect the rupee to trade with a slight positive bias, positive global equities and a slight correction in the greenback.”

“However, any bounce back in crude oil prices amid ongoing geopolitical tensions in the Middle East and selling pressure from foreign investors may weigh on the rupee at higher levels,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

Traders may take cues from India’s CPI and IIP data.

“Headline inflation is expected to ease to 5.09 per cent from 5.69 per cent. Investors may remain vigilant ahead of US inflation data on Tuesday,” Choudhary said, adding the USD-INR spot price is expected to trade in range of Rs 82.80-83.20.