Re rises 2ps to 82.89/$
USD-INR spot price is likely to trade in a range of Rs82.70 to Rs83.10
Mumbai: The rupee appreciated 2paise to settle at 82.89 against the US dollar on Monday, tracking a weak American currency overseas and positive equity market sentiment. However, volatile crude oil prices and foreign fund outflows weighed on the Indian currency, forex traders said. At the interbank foreign exchange market, the local unit opened at 82.86 and stayed in a narrow range before settling at 82.89 against the greenback, up 2paise from its previous close. The local unit touched a low of 82.91 during intra-day deals.
On Friday, the rupee settled 2paise lower at 82.91 against the US dollar. Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the rupee opened higher on weak dollar and positive domestic markets. However, it lost its initial gains on reports of dollar buying by public sector banks. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, remained unchanged at 103.79. Choudhary said the US dollar eased, extending Friday’s losses amid disappointing economic data from the US and positive global equities.
Chaudhary said: “We expect the rupee to trade with a slight positive bias with a narrow range on the rise in risk appetite in global markets and weak tone in the greenback. However, the surge in crude oil prices may cap a sharp upside. Any further dollar buying by PSU banks or the Reserve Bank of India (RBI) may also weigh on the rupee,” he said, adding that “USD-INR spot price is likely to trade in a range of Rs82.70 to Rs83.10”.
