Rupee rises 3 paise to close at 83.28 against U.S. dollar

The local unit finally settled at 83.28 (provisional) against the dollar, registering a rise of 3 paise from its previous close.

The rupee appreciated by 3 paise to settle at 83.28 (provisional) against the U.S. dollar on Wednesday amid softening crude oil prices.

Forex traders said the local unit consolidated in a narrow range weighed down by foreign fund outflows.

At the interbank foreign exchange, the domestic unit opened at 83.29 and moved in the range of 83.22 and 83.29 against the greenback during the session.

The local unit finally settled at 83.28 (provisional) against the dollar, registering a rise of 3 paise from its previous close.

The Indian rupee gained on positive domestic markets and a decline in crude oil prices. However, mixed to positive U.S. Dollar and FII outflows capped sharp gains, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

"We expect the rupee to trade with a slight negative bias as the U.S. Dollar may recover from lower levels if the Federal Open Market Committee (FOMC) meeting minutes are hawkish," Mr. Choudhary said.

FII outflows may also weigh on the rupee. However, a positive tone in the domestic markets and weakness in crude oil prices may support the rupee at lower levels, Mr. Choudhary added.