Rupee falls 1 paisa to 83.50 against dollar

Mumbai: The rupee pared initial gains to settle 1 paisa lower at 83.50 against the US dollar on Monday, as muted domestic equities weighed on investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.45 and hit the intraday high of 83.44 and a low of 83.50 against the American currency during the session.

It finally settled at 83.50 against the dollar, registering a loss of one paisa over the previous close. On Friday, the rupee settled at 83.49 against the US dollar.

Forex traders said the rupee gained on a weak dollar and decline in crude oil prices. However, weak domestic markets put pressure on the domestic unit.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.90, higher by 0.03 per cent.

In the domestic equity market, the 30-share BSE Sensex ended the day 36.22 points, or 0.05 per cent, lower at 79,960.38 points. The broader NSE Nifty settled 3.30 points, or 0.01 per cent, up at 24,320.55 points.

India’s forex reserves dropped $1.713 billion to $651.997 billion for the week ended June 28, the RBI said on Friday.