Rupee falls 5 paise to close at 83.92 against U.S. dollar

Indian rupee closes lower at 83.92 against USD due to rising crude oil prices and commodity surge.

The rupee depreciated by 5 paise to close at 83.92 (provisional) against the American currency on Tuesday (August 27, 2024), on overnight jump in crude oil prices and a surge in commodity prices.

However, positive domestic markets and a soft US dollar cushioned the downside, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.91 and touched an intra-day low of 83.95 against the U.S. dollar.

The domestic currency finally settled at 83.92 (provisional), 5 paise lower from its previous close.

On Monday, the Indian rupee settled for the day 3 paise higher at 83.87 against the American currency.

"We expect the rupee to trade with a slight positive bias on rise in global risk sentiments amid dovish Fed speak and rising expectations of a rate cut by the Fed in September.

"However, geopolitical tensions in the Middle East and rising crude oil prices may cap sharp upside. Traders may take cues from US consumer confidence data," Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.