Mumbai: Rupee traded in a narrow range and settled for the day lower by 4 paise to 84.06 against the US dollar on Thursday, pressured by foreign fund outflows, a negative trend in domestic equities and broad strength of the American currency.
Forex traders said rupee witnessed range-bound trade as weak domestic markets and a strong US dollar weighed on the domestic currency, while a decline in crude oil prices and contained geopolitical tensions cushioned the downside.
At the interbank foreign exchange market, the local unit opened at 84.01 and traded in a narrow range of 83.99 and 84.07 and finally settled for the day at 84.06, lower by 4 paise over its previous close of 84.02.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was marginally up by 0.01 per cent to 103.59 points.
Brent crude, the international benchmark, increased 0.50 per cent to $74.59 per barrel in futures trade.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth Rs 3,435.94 crore, according to exchange data.
On the macroeconomic front, the country’s merchandise exports rose marginally by 0.5 per cent to $34.58 billion in September while the trade deficit narrowed to a five-month low at $20.78 billion.