Rupee closes flat against US dollar

Mumbai: The rupee traded in a narrow range and closed flat at 83.95 against the American currency on Monday, as the support from a positive trend in equity markets was offset by a strong US dollar against major crosses overseas.

Concerns over global economic growth weighed on investor sentiments, forex traders said, adding that investors remained cautious ahead of US CPI and European Central Bank (ECB) monetary policy this week.

At the interbank foreign exchange market, the local unit opened at 83.96 against the American currency. It rose to the intra-day high of 83.86 but pared gains to finally settle at 83.95 against the US dollar, unchanged from its previous close.

On Friday, the rupee gained 2 paise to close at 83.95 against the US dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.37 per cent to 101.54.

Meanwhile, India’s forex reserves jumped by USD 2.299 billion to a new high of USD 683.987 billion for the week ended on August 30, according to the RBI data release on Friday.