Rupee rises 2 paise to close at 83.95 against U.S. dollar

Forex traders analyze rupee's performance amidst mixed market conditions, geopolitical tensions, and global economic factors.

The rupee traded in a narrow range to settle 2 paise higher at 83.95 (provisional) against the American currency on Wednesday (August 14, 2024), helped by a sharp decline in the U.S. Dollar against major currencies overseas.

Forex traders said a mixed-to-positive tone in the domestic market also supported the rupee.

However, foreign fund outflows and geopolitical tensions in the Middle East restricted the rise in the local unit.

At the interbank foreign exchange market, the local unit opened at 83.90 but soon fell into the negative zone and touched an intra-day low of 83.97 against the American currency.

The domestic unit finally settled at 83.95 (provisional) against the American currency, 2 paise higher from its previous close.

On Tuesday (August 13, 2024), the rupee settled for the day on a flat note at 83.97 against the U.S. dollar.

"We expect the rupee to trade with a slight negative bias on elevated commodity prices and heightened geopolitical tension in the Middle East between Israel and Iran.