Rupee Declines 2 Paise To 83.97 Against US Dollar

The rupee ended the day today lower by 2 paise at 83.97 (provisional) against the US dollar investors stayed on the sidelines ahead of the crucial domestic macroeconomic data.

As per forex traders, Indian rupee slipped on a positive tone in the US dollar and a surge in crude oil prices.
At the interbank foreign exchange market, rupee opened at 83.95 and hit an intraday low of 83.98 and finally settled at 83.97 (provisional) against the US dollar, lower by 2 paise from its earlier close.

The local unit had slumped 37 paise to settle at an all-time low of 84.09 against the US dollar on August 5, according to PTI report.

Earlier on Friday, rupee ended the day higher by 2 paise at 83.95 against US dollar.

"We expect the rupee to trade with a slight negative bias on strength in the US dollar and rising global crude oil prices. Selling pressure from foreign investors and geopolitical tensions in the Middle East may further pressurise the rupee," said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Forex traders said for the USD/INR pair 84.00 level is acting as a psychological resistance. Market participants are also awaiting cues from the Indian CPI inflation and IIP numbers scheduled to be released later in the day, added the PTI report.

Moreover, investors may remain cautious ahead of US CPI, retail sales and consumer confidence data from the US this week. "USD-INR spot price is expected to trade in a range of Rs 83.75 to Rs 84.25," Choudhary added.

On the other hand, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent higher at 103.18.
Brent crude surged 0.85 per cent to USD 80.34 per barrel.