Rupee rises seven paise to settle at 82.83 against U.S. dollar

The Rupee appreciated seven paise to settle at 82.83 (provisional) against the U.S. dollar on March 6, buoyed by a weak American currency against major rivals overseas and a rally in domestic equities.

The Rupee appreciated seven paise to settle at 82.83 (provisional) against the U.S. dollar on March 6, buoyed by a weak American currency against major rivals overseas and a rally in domestic equities.

However, surging crude oil prices in international markets put pressure on the local currency and restricted the rise, forex traders said.

At the interbank foreign exchange market, the local unit opened at 82.90 and oscillated between the peak of 82.82 and the lowest level of 82.91 against the greenback during intra-day deals. The currency finally settled at 82.83 (provisional), registering a gain of seven paise from its previous close. On Tuesday, the Rupee settled flat at 82.90 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, declined by 0.19% to 103.55.

Analysts attributed the downward movement in the dollar index to the services PMI (Purchasing Managers' Index) data in the U.S., which showed the sector's growth in February fell short of expectations.

Market participants were also awaiting cues from non-farm payroll data in the U.S. and Federal Reserve Chairman Jerome Powell's testimony at the U.S. Congress about the Central bank's monetary policy moves. Brent crude futures, the global oil benchmark, climbed 0.77% to $82.67 per barrel.