Rupee falls 3 paise to close at 83.31 against U.S. dollar

The rupee consolidated in a narrow range and settled lower by 3 paise at 83.31 (provisional) against the U.S. dollar on November 22, tracking a strong American currency overseas.
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The rupee consolidated in a narrow range and settled lower by 3 paise at 83.31 (provisional) against the U.S. dollar on November 22, tracking a strong American currency overseas.

Forex traders said a muted trend in domestic equities also weighed on the local unit while a correction in oil prices provided support to the currency.

At the interbank foreign exchange market, the local unit opened at 83.31 and touched a low of 83.34 against the greenback.

It finally settled at 83.31 (provisional) against the dollar, registering a fall of 3 paise from its previous close.

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On November 21, the rupee recovered from its all-time low to settle 10 paise higher at 83.28 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.18% higher at 103.75.

Brent crude futures, the global oil benchmark, fell 0.79% to $81.80 per barrel.

The U.S. dollar recovered after the minutes of the Federal Open Market Committee (FOMC) released on Tuesday showed that the monetary policy stance was slightly hawkish.

“We expect rupee to trade with a slight positive bias towards dollar inflows due to IPOs in the domestic markets. However, a positive tone in the US dollar and expectations that crude oil prices may also surge may cap sharp upside,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

USD-INR spot price is expected to trade in a range of 83 to 83.60, Mr. Choudhary said.