Rupee recovers from record lows; rises 6 paise to settle at 83.34 against U.S. dollar

Rupee rebounds 6 paise to 83.34 vs USD on positive sentiment, weak US dollar, crude prices. Forex reserves up $5.077 bn to $595.397 bn. Sensex up 204.16 pts, Nifty 95 pts. FIIs net buyers, purchase Rs 2,625.21 cr.

The rupee on November 28 rebounded from record low levels, gaining 6 paise to settle at 83.34 (provisional) against the US dollar amid positive sentiment in the equity markets and inflow of foreign funds.

Forex traders said a weak American currency against major rivals and crude prices hovering close to the level of USD 80 per barrel also supported the Indian currency.

At the interbank foreign exchange market, the local unit opened at 83.37 and moved in the range of 83.32 to 83.39 against the greenback during intra-day.

It finally settled at 83.34 (provisional) against the dollar, registering a gain of 6 paise from its previous close.

On Friday, the rupee settled at 83.40 against the American currency. The forex market was closed on Monday on account of Guru Nanak Jayanti.

Dilip Parmar, Research Analyst, HDFC Securities, said: "Indian rupee started the week on a positive note as the greenback retreated against major currencies after weak US economic data. However, the month-end dollar demand has contained the gains in the rupee.

He said the price action in USD-INR remained muted and lacked direction. "In the short term, the pair has support at 83.20 and resistance at 83.50." Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.02% lower at 103.18.