Rupee settles 2 paise lower at 83.05 against US dollar

Mumbai: The rupee declined 2 paise to close at 83.05 (provisional) against the US dollar on Tuesday, amid a firm American currency against major currencies overseas.

However, positive sentiment in the domestic equity markets and lower global crude prices supported the domestic unit, forex analysts said.

Investors were cautious as the Reserve Bank’s monetary policy committee (MPC), the six-member rate-setting panel, began the deliberation on Tuesday. The central bank will announce the key interest rate decision on Thursday.

At the interbank foreign exchange, the rupee opened at 83.03 against the dollar and touched the intra-day low of 83.06 against the greenback. The local unit finally settled at 83.05 (provisional) against the US currency, registering a loss of 2 paise from the previous day.

The rupee settled 5 paise lower at 83.03 against the dollar on Monday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent higher at 104.36.