Re settles flat against USD
Decline in crude oil prices supports the local currency
Mumbai: The rupee settled flat at 83.26 against the US dollar on Tuesday as weak domestic equity markets and sustained foreign fund outflows weighed on investor sentiments.
However, a decline in crude oil prices supported the local currency amid geopolitical tensions in the Middle East, forex traders said.
At the interbank foreign exchange, in a range-bound trade, the rupee opened at 83.26 and finally settled at the same level as the American currency.
During the day, the rupee witnessed range-bound trade, it saw an intra-day high of 83.25 and a low of 83.27 against the greenback.
“We expect the rupee to trade with a slight negative bias on geopolitical uncertainty in the Middle East which may lead to safe-haven demand for US Dollar. Month-end Dollar demand from Oil Marketing Companies (OMCs) may also weigh on Yen,” Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas said.
However, the delayed ground invasion may support riskier currencies at lower levels, Choudhary said.
