Rupee rises 7 paise to settle at 83.06 against U.S. dollar

The rupee gains against the US dollar due to strong domestic equity markets and weak American currency.

The rupee gained 7 paise to settle at 83.06 (provisional) against the U.S. dollar on Friday, tracking robust buying in domestic equity markets and weak American currency overseas.

However, strengthening crude oil prices and foreign capital outflows capped the sharp gain in the domestic currency, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 83.15 and traded between the peak of 83.06 and the lowest level of 83.16 against the greenback.

The local unit finally settled at 83.06 (provisional) against the dollar, registering a gain of 7 paise against its previous close.

On Thursday, the rupee settled 1 paisa higher at 83.13 against the U.S. dollar.

The rupee appreciated following a positive trend in domestic markets and softness in the U.S. dollar, Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas, said.

"However, recovery in crude oil prices and FII outflows over the past couple of sessions capped sharp gains."