Rupee settles on flat note at 83.51 against U.S. dollar

Rupee remains flat at 83.51 against U.S. dollar due to domestic support, foreign fund outflows, and election pressure

The rupee settled on a flat note at 83.51 (provisional) against the U.S. dollar on Tuesday, as the support from positive domestic markets and favourable inflation data was negated by strong US Dollar and foreign fund outflows.

Forex traders said the rupee remains under pressure due to ongoing elections as well as foreign fund outflows and the same shall subside once the results are out.

At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.51, and touched an intraday low of 83.52 during the day.

The domestic unit finally settled for the day at 83.51 (provisional), unchanged from its previous close.

On Monday, the rupee consolidated in a narrow range and settled flat at 83.51 against the U.S. dollar.

"We expect the rupee to trade with a slight negative bias on the strong U.S. dollar and a rise in crude oil prices. Sustained FII outflows may further pressure the rupee," Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

Mr. Choudhary further noted that a positive tone in the domestic markets may support the rupee at lower levels.