Rupee rises 4 paise to close at 83.48 against U.S. dollar

Rupee closes 4 paise higher at 83.48 against USD, rebounding on RBI intervention and domestic equities surge.

The rupee pared initial losses to finally settle 4 paise higher at 83.48 against the U.S. dollar on Friday, tracking a strong rebound in domestic equities.

Forex traders said the domestic currency fell in early trade on risk aversion in global markets amid geopolitical tensions in the Middle East.

However, the rupee recovered on reports of the RBI intervention to defend a sharp fall in the local unit, they added.

At the interbank foreign exchange market, the local unit opened at 83.58 against the greenback. The unit hit an intra-day high of 83.46 against the greenback.

The domestic unit finally settled at 83.48 (provisional) against the dollar, 4 paise higher from its previous close.

On Thursday, the rupee rebounded from its all-time low level and closed 9 paise higher at 83.52 against the U.S. dollar.

"Reports that Iran said that there was no direct attack and the explosion was due to activity of the Iranian air defence system, which also aided the recovery in the rupee as well as domestic equities. The U.S. Dollar rose on hawkish comments from Fed officials and safe-haven demand," said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.