Rupee slips 7 paise to close at 83.03 against dollar

The rupee depreciated by 7 paise to 83.03 (provisional) against the US dollar on Friday, tracking a strong American currency and elevated crude oil prices in the international market.

Forex traders said the Indian rupee depreciated as foreign fund outflows weighed on it. However, positive domestic markets cushioned the downside.

At the interbank foreign exchange market, the local unit opened at 82.96 and finally settled at 83.03 (provisional) against the dollar, down by 7 paise from its previous close.

On Thursday, the rupee settled on a flat note at 82.96 against the US dollar, after the Reserve Bank decided to keep the key policy rate unchanged for the sixth time in a row to maintain a tight vigil on inflation.

“We expect the rupee to trade with a slight negative bias on underlying strength in the US dollar and concerns over rising crude oil prices amid escalating geopolitical tensions in West Asia,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

Choudhary further added that a positive tone in domestic markets, and mixed to positive global equities may support the rupee at lower levels. There are no major economic data over the next couple of days, which may lead to low volatility.

“Investors may now wait for US inflation data on Tuesday. The USD-INR spot price is expected to trade in a range of Rs 82.80 to Rs 83.30,” he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.01 per cent down at 104.15.

Brent crude futures, the global oil benchmark, was trading higher by 0.22 per cent at $81.81 per barrel.

On the domestic equity market front, the Sensex advanced 167.06 points, or 0.23 per cent, to settle at 71,595.49 points. The Nifty fell 64.55 points, or 0.3 per cent, to 21,782.50 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 4,933.78 crore, according to exchange data.