Rupee rises 5 paise to 83.91 against U.S. dollar in early trade

Indian rupee trades in tight range as RBI maintains control, with outlook predicting narrow band and dollar index down.

The rupee appreciated by 5 paise to 83.91 against the U.S. dollar in early trade on Friday (September 13, 2024) supported by weakening of the American currency in the overseas market and significant foreign fund inflows.

Forex traders said the rupee continues to trade within a tight range, as the Reserve Bank of India (RBI) is maintaining a firm grip on the domestic currency.

At the interbank foreign exchange market, the local unit opened at 83.92, then inched further to touch 83.91, registering a rise of 5 paise from its previous close.

On Thursday, the local unit settled 3 paise higher at 83.96 against the U.S. dollar.

"The Indian rupee appears to be moving in its own orbit, refusing to appreciate and continuing to trade within a tight range, as the RBI maintains a firm grip on the domestic currency. In the near-term, the rupee is expected to trade within a narrow band of 83.80 to 84.05, while the medium-term outlook slightly broadens the range to 83.70 to 84.05," CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.30% to 101.06 points.

Brent crude, the international benchmark, gained 0.49% to $72.34 per barrel in futures trade.