Rupee settles 5 paise lower at 83.18 against U.S. dollar

At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.14 and touched an intra-day high of 83.10 and a low of 83.19

The rupee pared initial gains and settled for the day 5 paise lower at 83.18 (provisional) against the U.S. dollar on May 28, amid a negative trend in domestic equities and on dollar demand from importer at lower levels.

Forex traders said the rupee consolidated in a narrow range as elevated crude oil prices weighed on investor sentiments, while the decline in U.S. dollar cushioned the downside.

At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.14 and touched an intra-day high of 83.10 and a low of 83.19.

The domestic unit finally settled for the day at 83.18 (provisional), down 5 paise from its previous close.

On Monday, the rupee pared its initial gains and settled for the day lower by 3 paise at 83.13 against the U.S. dollar.

"We expect the rupee to trade with a slight positive bias as strength in the domestic markets and expectations of fresh foreign inflows may support the rupee," said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

Softening of the U.S. Dollar may also support the local unit. However, a rise in crude oil prices may cap sharp upside.