Rupee falls 3 paise to 83.98 against dollar

Mumbai: The rupee traded in a narrow range on Tuesday and depreciated 3 paise to close at 83.98 against the American currency, weighed down by the strengthening of the American currency in the overseas market.

Forex traders said the US dollar recovered amid mixed non-farm payrolls data. The slight recovery in crude oil prices also weighed on the rupee. However, a surge in the domestic markets cushioned the downside.

At the interbank foreign exchange market, the local unit opened at 83.95 against the American currency and finally settled at 83.98 against the US dollar, down 3 paise from its previous close.

“We expect the rupee to trade with a slight negative bias on the strong US dollar and concerns over global economic growth. However, positive domestic markets and any intervention by the Reserve Bank of India (RBI) may support the rupee at lower levels,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

Choudhary further noted that “investors may remain cautious ahead of the US CPI and ECB monetary policy this week. “USDINR spot price is expected to trade in a range of 83.70 to 84.20,” he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03 per cent to 101.58.