Mumbai: The rupee pared its initial gains and settled for the day lower by 3 paise at 83.13 against the US dollar on Monday, mirroring the benchmark indices that erased their gains and ended the day off their record-high levels.
Forex traders said the rupee settled in a narrow range as the weakness of the American currency in the overseas market supported the rupee, while elevated crude oil prices in the international market restricted the upmove.
At the interbank foreign exchange, the local unit opened at 83.08, then touched an intra-day high of 83.05 but soon pared the gains and settled for the day lower by 3 paise at 83.13 against the American currency.
On Friday, the rupee rallied for the fourth consecutive trading session and settled with a sharp gain of 19 paise at 83.10 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.67, lower by 0.05 per cent.
On the domestic macroeconomic front, India’s forex reserves jumped $4.549 billion to a new all-time high of $648.7 billion for the week ended May 17, the RBI said on Friday.
This is the third straight week of increase in the overall kitty, which had increased by $2.561 billion to $644.151 billion in the previous reporting week ended
May 17.