Mumbai: The rupee traded in a narrow range and settled lower by 3 paise at 83.93 against the American currency on Thursday, as relentless dollar demand from importers and relentless foreign fund outflows dampened investor sentiments.
However, a positive trend in domestic equities and lower global crude oil prices supported the domestic currency and restricted its fall, forex traders said.
At the interbank foreign exchange market, the local unit opened weak at 83.93 and touched an intraday low of 83.97 against the US dollar.
The domestic currency finally settled at 83.93, 3 paise lower from its previous close.
On Wednesday, the rupee fell 13 paise to 83.90 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.19 per cent higher at 101.23.
Meanwhile, the Federal Reserve’s recent meeting minutes revealed that most officials are inclined towards a rate cut in September, and this has put downward pressure on the US dollar and offered some support to the rupee.
Traders will now focus on cues from the Jackson Hole symposium, where Fed Chair Jerome Powell’s remarks could set the tone for global currency
markets.