Re rises 5ps to 83.03$

Mumbai: The rupee appreciated 5paise to close at 83.03 against the US dollar on Wednesday, tracking positive domestic equities. Forex traders said strength of the American currency in the overseas market and elevated crude oil prices weighed on the local unit and restricted a sharp uptick. At the interbank foreign exchange, the local unit opened at 83.11 against the greenback. It hit an intra-day high of 83.02 and a low of 83.12. It finally settled at 83.03 against the dollar, higher by 5paise from its previous close of 83.08.

“We expect the rupee to trade with a slight negative bias on strong US dollar and risk aversion in global markets. Rising crude oil prices may also put pressure on the rupee,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas. Choudhary added that any bounce back in domestic markets may support the rupee at lower levels. “Traders may remain cautious ahead of India’s trade balance and US retail sales data. USD-INR spot price is expected to trade in a range of Rs 82.80- 83.40,” Choudhary said.