Rupee rises 4 paise to 83.57 against dollar

Mumbai: The rupee recovered from over two months low level and settled 4 paise higher at 83.57 against the US dollar on Friday, backed by sustained inflow of foreign capital and softening crude oil prices overseas.

The local unit, however, faced resistance due to strengthening American currency and subdued sentiment in the domestic equity markets, forex traders said.

At the interbank foreign exchange, the local unit opened at 83.60 and touched the intra-day high of 83.49 against the greenback.

The currency finally settled at 83.57 against the dollar, registering a gain of 4 paise from its previous

close.

On Thursday, the rupee had plunged 17 paise to hit its over two-month low level of 83.61 against the dollar.

The domestic currency recorded its previous lowest closing level of 83.61 on April 16 this year.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee appreciated on favourable macroeconomic data and reports of intervention by the RBI. “However, weak domestic markets and a strong US dollar capped sharp gains.”

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher 0.13 per cent at 105.36.