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Re settles flat against USD

Decline in crude oil prices supports the local currency

Re settles flat against USD

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.

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