Rupee settles 1 paisa higher at 83.11 against U.S. dollar

The rupee in Mumbai closed at 83.11 against the dollar due to weak American currency and rising oil prices.

The rupee rose 1 paisa in a range-bound trade to close at 83.11 (provisional) against the U.S. dollar on January 25, as the support from weak American currency overseas was negated by rising crude oil prices.

Forex traders said the rupee is trading in a narrow range as muted domestic equities and sustained foreign fund outflows dented investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.13 against the greenback. The unit oscillated between an intraday low of 83.14 and a high of 83.08 and finally settled at 83.11 (provisional) against the dollar, 1 paisa higher from its previous close.

On Wednesday, the rupee had settled at 83.12 against the U.S. dollar.

The rupee traded on a flat note amid weak domestic markets and rising crude oil prices. Foreign fund outflows also weighed on the domestic currency, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

However, the American currency was trading on a muted note, as traders pared their positions ahead of U.S. Q4-2023 GDP data capped sharp gains.

"We expect the rupee to trade with a slight negative bias on weak domestic markets and geopolitical tensions in the Middle East. The Red Sea issue, rising crude oil prices, and selling pressure from foreign investors may also dent the rupee.