Rupee falls 5 paise to close at 83.50 against U.S. dollar

Rupee falls to 83.50 against U.S. dollar due to crude oil prices and weak equities, with slight positive bias expected.

The rupee pared its initial gains and settled for the day 5 paise lower at 83.50 (provisional) against the U.S. dollar on Monday, weighed down by elevated crude oil prices.

Forex traders said a weak trend in domestic equities also dented investor sentiments.

At the interbank foreign exchange, the local unit opened at 83.43, then touched an intra-day high of 83.42 and a low of 83.50 against the greenback. The rupee finally settled at 83.50 (provisional) against dollar, registering a fall of 5 paise over its previous close.

On Friday, the rupee inched up 1 paisa to settle at 83.45 against the U.S. dollar.

Forex traders said U.S. dollar demand from importers and a recovery in crude oil prices weighed on the rupee.

"We expect the rupee to trade with a slight positive bias on the rise in risk appetite in global markets. However, any recovery in crude oil prices may cap sharp upside. Any renewed geopolitical tensions in the Middle East may also weigh on rupee at higher levels," said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

USD-INR spot price is expected to trade in a range of ₹83.20 to ₹83.70, Mr. Choudhary added.