Rupee rises 4 paise to close at 83.88 against U.S. dollar

Forex traders await U.S. Fed policy cues, rupee steady, Sensex rises, FIIs net buyers, India's forex reserves hit record high.

The rupee witnessed range-bound trade and settled for the day higher by 4 paise at 83.88 (provisional) against the U.S. dollar on Monday (September 16, 2024) supported by weak American currency and significant foreign fund inflows, while firm crude oil prices capped sharp gains.

Forex traders said market participants are eagerly awaiting cues from the U.S. Fed policy on Wednesday (September 11, 2024), with a rate cut all but certain. However, the magnitude of the cut remains uncertain.

Moreover, the rupee continues to hold steady within a well-defined range on active intervention by the Reserve Bank of India (RBI), they added.

At the interbank foreign exchange market, the local unit opened at 83.89 and witnessed an intraday high of 83.87 and a low of 83.90 against the American currency.

The domestic unit finally settled for the day at 83.88 (provisional), higher by 4 paise over its previous close, amid a positive trend in domestic equities.

On Friday (September 13, 2024), the local unit settled higher by 4 paise at 83.92 against the U.S. dollar.

"We expect the Indian rupee to trade with a slight positive bias on continued weakness in the U.S. dollar ahead of the FOMC meeting this week," said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.