Rupee recovers from record lows; rises 6 paise to settle at 83.34 against US dollar

The rupee on Tuesday rebounded from record low levels, gaining 6 paise to settle at 83.34 (provisional) against the US dollar amid positive sentiment in the equity markets and inflow of foreign funds.

Forex traders said a weak American currency against major rivals and crude prices hovering close to the level of $80 per barrel also supported the Indian currency.

At the interbank foreign exchange market, the local unit opened at 83.37 and moved in the range of 83.32 to 83.39 against the greenback during intra-day.

It finally settled at 83.34 (provisional) against the dollar, registering a gain of 6 paise from its previous close.

On Friday, the rupee settled at 83.40 against the American currency. The forex market was closed on Monday on account of Guru Nanak Jayanti.

Dilip Parmar, Research Analyst, HDFC Securities, said: “Indian rupee started the week on a positive note as the greenback retreated against major currencies after weak US economic data. However, the month-end dollar demand has contained the gains in the rupee.

He said the price action in USD-INR remained muted and lacked direction. “In the short term, the pair has support at 83.20 and resistance at 83.50.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 103.18.

Brent crude futures, the global oil benchmark, rose 1.18 per cent to $80.92 per barrel.

On the domestic equity market front, Sensex climbed 204.16 points, or 0.31 per cent, to settle at 66,174.20 points. The Nifty advanced 95.00 points, or 0.48 per cent, to 19,889.70 points.

Foreign institutional investors were net buyers in the capital market on Friday as they purchased shares worth Rs 2,625.21 crore, according to exchange data.

Also, the country’s forex reserves increased by $5.077 billion to $595.397 billion during the week ended November 17, the Reserve Bank said on Friday.