Mumbai: The rupee recovered from all-time low levels to settle up by 1 paisa at 83.37 against the US dollar in a restricted trade on Tuesday amid a stronger American currency in overseas markets and disappointing services sector data. Forex traders said the rupee traded in a narrow range as positive domestic markets and crude oil prices trading below the $80 per barrel mark cushioned the downside.
At the interbank foreign exchange market, the local unit opened at its all-time low level of 83.41 against the greenback. The local unit oscillated between an intra-day low of 83.41 and a high of 83.37 against the greenback and finally settled at 83.37 against the dollar, higher by 1 paisa from its previous close, even as domestic benchmark indices touched new lifetime peaks.
On Monday, the rupee settled at 83.38 against the US dollar despite domestic benchmark stock indices rallying to lifetime high levels. “We expect Rupee to trade with a slight negative bias on positive US dollar and weak global markets. However, expectations of fresh foreign fund inflows and a weak tone in crude oil prices may support rupee at lower levels,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. Traders may take cues from US ISM services PMI and JOLTS job openings data. Investors may remain cautious ahead of RBI’s monetary policy decision later this week. USDINR spot price is expected to trade in a range of 83.10 to 83.70, Choudhary said.
