Rupee rises 2 paise to 83.51 against US dollar

Mumbai: The rupee consolidated in a narrow range and settled for the day higher by 2 paise at 83.51 against the US dollar on Friday, as the support from firm domestic equities was negated by elevated crude oil prices.

Forex traders said the rupee inched higher as domestic equities touched fresh all-time highs and a weak tone in the US dollar supported the local unit.

At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.53, and touched an intraday high of 83.49 and a low of 83.55 against the American currency during the session.

It finally settled at 83.51 against the dollar, 2 paise higher than its previous close.

On Thursday, the rupee settled 2 paise lower at 83.53 against the US dollar.

“We expect the rupee to trade with a slight positive bias on the weak US dollar as cooling inflation raises expectations of a September rate cut by the US Fed,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Odds of a September rate cut rose to around 90 per cent post inflation data.

USD-INR spot price is expected to trade in a range of Rs 83.25 to Rs 83.80.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent lower at 104.39.