Rupee rises 4 paise to 83.97 against dollar

Mumbai: The rupee traded in a narrow range and settled for the day higher by 4 paise at 83.97 against the US dollar on Thursday, on weakening of the American currency in the overseas market and an overall drop in crude oil prices.

Forex traders said the domestic unit witnessed a slight negative bias on weak global equities and concerns over global economic growth.

Moreover, dollar demand from importers also dented investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.98 and witnessed an intraday high of 83.97 against the American currency.

The domestic unit finally settled for the day at 83.97, higher by 4 paise over its previous close.

On Wednesday, the rupee breached the crucial 84-mark for the second time within a month and settled 3 paise lower at 84.01 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.15 per cent to 101.20 points.

Brent crude, the international benchmark, gained 0.74 per cent to $73.24 per barrel in futures trade.

Forex traders said crude oil levels of $73 per barrel will act as a support for the domestic unit as India, the world’s third-largest oil importer, stands to benefit from cheaper oil.