Rupee rises 2 paise to 83.12 against U.S. dollar

The rupee appreciated 2 paise to settle at 83.12 (provisional) against the U.S. dollar on Thursday, tracking a weak American currency against major rivals overseas.

The rupee appreciated 2 paise to settle at 83.12 (provisional) against the U.S. dollar on Thursday, tracking a weak American currency against major rivals overseas.

A weak trend in domestic equity markets and rising crude oil prices kept the movement of the domestic currency restricted, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 83.16 and traded in the range of 83.10 to 83.18 against the greenback. The unit finally settled at 83.12 against the dollar, registering a gain of 2 paise over its previous close.

On Wednesday, the rupee settled 2 paise lower at 83.14 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.15% lower at 103.05 on Thursday.

Analysts said the dollar retreated after the U.S. data released on Wednesday showed increased retail sales in the country, reflecting sustained economic growth and dashing the financial market's hope of an interest rate cut by the Federal Reserve.

"U.S. dollar softened today on positive global markets. U.S. retail sales and industrial production data topped forecasts, which trimmed rate cut expectations by the Fed in March 2024," said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.