Rupee falls 6 paise to end at 83.28 against U.S. dollar

Rupee settled 6 paise lower at 83.28 vs US$ on Fri due to foreign fund outflows. Positive trend in domestic equities supported the local unit & restricted downside. Services sector growth in India fell to 7-month low in Oct due to softer output & new business.

The rupee consolidated in a narrow range and settled 6 paise lower at 83.28 (provisional) against the U.S. dollar on Friday, as sustained foreign fund outflows weighed on investor sentiments.

Forex traders said a positive trend in domestic equities supported the local unit at lower levels and restricted the downside.

At the interbank foreign exchange market, the local unit opened at 83.22 and touched a low level of 83.29 against the greenback.

It finally settled at 83.28 (provisional) against the dollar, registering a loss of 6 paise from its previous close.

On Thursday, the rupee had settled at 83.22 against the U.S. dollar.

"The domestic currency, Asia's second-best performer this year, continues to be range-bound as risk appetite remains strong on the U.S. Federal Reserve standing pat on interest rates," said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

Mr. Singh further said that the Indian Central Bank continues to defend the domestic currency from weakening beyond 83.29.