Rupee rises 2 paise to close at 83.95 against US dollar

rupee consolidated in a narrow range and settled for day higher by 2 paise at 83.95 (provisional) against US dollar on Friday, supported by gains in domestic markets.

Forex trers said rupee edged up slightly on gains in domestic markets. However, a surge in crude oil prices capped sharp gains for local unit.

At interbank foreign exchange market, local unit opened at 83.95 and touched an intray low of 83.96 and a high of 83.88 against dollar during session.

It finally settled at 83.95 (provisional) against American currency, higher by 2 paise from its previous close.

local unit h slumped 37 paise to settle at an all-time low of 84.09 against US dollar on Monday.

On Thursday, rupee consolidated in a narrow range and settled for day lower by 2 paise at 83.97 against US dollar.

Forex trers said post Reserve Bank of India's monetary policy anuncement, markets w wait for US CPI data, India CPI, WPI and IIP data, and India's tre data, all scheduled to be released next week.

Jackson Holes Symposium to be held after next week will also remain in focus, trers said.

Meanwhile, dollar index, which gauges greenback's strength against a basket of six currencies, fell 0.05 per cent to 103.15, on better-than-expected weekly unemployment claims data.

Brent crude, global oil benchmark, was tring 0.18 per cent higher at $79.30 per barrel in futures tre.

"We expect rupee to tre with a slight negative bias on selling pressure from foreign investors and a positive US dollar. Ongoing geopolitical tensions in Middle East may also pressurise rupee," said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Choudhary furr ted that positive global markets after easing worries over yen carry-tre may support rupee at lower levels. "USD-INR spot price is expected to tre in a range of Rs 83.75 to Rs 84.20," he said.

In domestic equity market, 30-share BSE Sensex vanced 819.69 points, or 1.04 per cent, to close at 79,705.91 points, while Nifty jumped 250.50 points, or 1.04 per cent, to 24,367.50 points.

Foreign institutional investors (FIIs) were net sellers in capital markets on Thursday as y offloed shares worth Rs 2,626.73 crore, according to exchange data.

Meanwhile, Monetary Policy Committee (MPC) of Reserve Bank kept benchmark repurchase or repo rate unchanged at 6.50 per cent.

Anuncing bi-monthly monetary policy review RBI Goverr Shaktikanta Das said Indian rupee remained largely range-bound so far this financial year.

Das furr ted that country's forex reserves touched a record high of $675 billion as on August 2.