Rupee rises 6 paise to 83.31 against US dollar

Mumbai: The rupee appreciated 6 paise to close at 83.31 against the US dollar on Tuesday following a weak greenback against major currencies overseas and softening crude oil prices in international markets.

However, a sluggish trend in the domestic equity markets restricted the sharp upside in the local currency, forex traders said.

At the interbank foreign exchange market, the local unit opened strong at 83.32 and touched an intraday high of 83.26 and a low of 83.36.

The domestic unit finally settled at 83.31, a gain of 6 paise from its previous close.

On Friday, the rupee had settled at 83.37 against the US dollar.

The forex market was closed on Monday on account of general elections.

“A decline in crude oil prices and fresh foreign inflows also supported the rupee. US Dollar softened on rate cut expectations by Fed but hawkish comments by Fed officials supported the US dollar at lower levels,” Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07 per cent to 104.38.