Re gains 3ps to 83.43/$

Mumbai: The rupee appreciated 3 paise to settle at 83.43 against the US dollar on Friday, tracking a weak American currency and retreating crude oil prices. Forex traders said a massive selling in the domestic equity market and outflow of foreign funds capped the gains in the local currency. At the interbank foreign exchange, the domestic unit opened at 83.40 and moved in the range of 83.34 and 83.44 against the greenback during the session. The local unit finally settled at 83.43 against the dollar, registering a rise of 3paise from its previous close.

The rupee had settled 3paise lower at 83.46 against the dollar on Thursday. Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the rupee gained on a weak US dollar and a decline in crude oil prices. However, weak domestic markets and FII outflows capped sharp gains. The weak dollar was attributed to the US Federal Reserve’s decision to keep the key interest rate unchanged for the sixth consecutive time, citing slower progress on the inflation front. Choudhary further said the rupee is expected to trade with a slight negative bias on weak domestic markets and selling pressure from foreign investors.

However, a weak tone and a soft US dollar may support the rupee at lower levels.