Rupee falls 5 paise to close at 83.26 against U.S. dollar on FII outflows

Forex traders said a negative trend in domestic equities also weighed on the local unit

The rupee settled lower by 5 paise at 83.26 (provisional) against the U.S. dollar in a range-bound trade on November 7, tracking a strong American currency overseas and sustained foreign fund outflows.

Forex traders said a negative 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 83.23 and touched a low of 83.27 against the greenback. It finally settled at 83.26 (provisional) against the dollar, registering a loss of 5 paise from its previous close.

On Monday, the rupee had settled lower at 83.21 against the U.S. dollar.

Forex traders said the rupee is expected to witness range-bound trade, as investors resorted to dollar buying on account of demand from FPIs, oil and External Commercial borrowing (ECB) redemptions.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.37% higher at 105.60.

Brent crude futures, the global oil benchmark, fell 1.78% to $83.66 per barrel.