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Re pares early gains

Home currency falls 5ps to 83.50/$; USD-INR spot price is expected to trade in a range of Rs83.20 to Rs83.70

Re pares early gains

Mumbai: The rupee pared its initial gains and settled for the day 5paise lower at 83.50 against the US dollar on Monday, weighed down by elevated crude oil prices.Forex traders said a weak trend in domestic equities also dented investor sentiments. At the interbank foreign exchange, the local unit opened at 83.43, then touched an intra-day high of 83.42 and a low of 83.50 against the greenback. The rupee finally settled at 83.50 against dollar, registering a fall of 5paise over its previous close.

On Friday, the rupee inched up 1 paisa to settle at 83.45 against the US dollar. Forex traders said US dollar demand from importers and a recovery in crude oil prices weighed on the rupee. “We expect the rupee to trade with a slight positive bias on the rise in risk appetite in global markets. However, any recovery in crude oil prices may cap sharp upside. Any renewed geopolitical tensions in the Middle East may also weigh on rupee at higher levels,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

USD-INR spot price is expected to trade in a range of Rs83.20 to Rs83.70, Choudhary added. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent higher at 105.09. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth Rs2,391.98 crore, according to exchange data.

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