Rupee settles on flat note

Mumbai: The rupee consolidated in a narrow range and settled for the day on a flat note, higher by 2paise at 83.50 against the US dollar on Thursday, on weak domestic markets and a strong American currency. Forex traders said massive foreign fund outflows dented investors’ sentiments. At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.49 and touched an intraday high of 83.44. The local unit finally settled for the day at 83.50, higher by 2paise over its previous close.

On Wednesday, the rupee stayed range-bound and settled 1 paisa lower at 83.52 against the US dollar. “The Indian rupee traded flat on weak domestic markets and a strong US dollar. The overnight jump in crude oil prices also put pressure on the rupee. However, likely dollar inflows supported the rupee earlier in the day,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.70, higher by 0.15 per cent, as the US dollar gained on hawkish Fedspeak and geopolitical tensions in the Middle East. “We expect the rupee to trade with a slight negative bias amid strength in the US dollar and selling pressure by foreign investors.