Rupee falls 7 ps to 83.03/$

Mumbai: The rupee depreciated by 7 paise to 83.03 (provisional) against the US dollar on Friday, tracking a strong American currency and elevated crude oil prices in the international market.

Forex traders said the Indian rupee depreciated as foreign fund outflows weighed on the rupee. However, positive domestic markets cushioned the downside. At the interbank foreign exchange market, the local unit opened at 82.96 and finally settled at 83.03 (provisional) against the dollar, down by 7 paise from its previous close. On Thursday, the rupee settled on a flat note at 82.96 against the US dollar, after the Reserve Bank decided to keep the key policy rate unchanged for the sixth time in a row to maintain a tight vigil on inflation.

“We expect the rupee to trade with a slight negative bias on underlying strength in the US dollar and concerns over rising crude oil prices amid escalating geopolitical tensions in the Middle East,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas. Choudhary further added that a positive tone in domestic markets and mixed to positive global equities may support rupee at lower levels. There are no major economic data over the next couple of days, which may lead to low volatility.