Rupee rises 3 paise to 83.87 against dollar

Mumbai: The rupee pared its initial gains and settled for the day 3 paise higher at 83.87 against the American currency on Monday, weighed down by a surge in crude oil prices.

Forex traders said the Indian rupee gained in morning trade on rise in domestic markets and a weak US dollar.

However, a surge in crude oil prices capped sharp gains for the local unit.

At the interbank foreign exchange market, the local unit opened at 83.83 and touched an intra-day high of 83.80 against the US dollar and a low of 83.91.

The domestic currency finally settled at 83.87, 3 paise higher from its previous close.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07 per cent higher at 100.78.

India’s forex reserves jumped $4.546 billion to $674.664 billion during the week ended August 16, the Reserve Bank of India said on Friday. In the previous week, the forex kitty had dropped $4.8 billion to $670.119 billion.