Rupee rises 5 paise to close at 83.23 against U.S. dollar

The rupee traded in a narrow range to settle 5 paise higher at 83.23 (provisional) against the U.S. dollar on Thursday

The rupee traded in a narrow range to settle 5 paise higher at 83.23 (provisional) against the U.S. dollar on Thursday, tracking softening crude prices in the international markets amid lingering geopolitical uncertainties. However, foreign fund outflows, a weak greenback overseas and a negative trend in domestic equities weighed on investor sentiments, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.26 against the U.S. currency and witnessed a high of 83.23 and a low of 83.28 during intra-day trade.

The local unit settled at 83.23 (provisional), registering a gain of 5 paise over its previous close.

The rupee declined on Thursday pressurised by a weak tone in the domestic markets and a rise in U.S. Dollar. FII selling also weighed on the domestic currency, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.05% to 106.61.

Global oil benchmark Brent crude futures fell 1.92% to $89.74 per barrel.

"We expect the rupee to trade with a slight negative bias as risk aversion in the global markets amid rising geopolitical uncertainty in the Middle East may put pressure on Rupee," Mr. Choudhary said.