Rupee settles 2 paise higher at 83.26 against U.S. dollar

Forex traders said the local unit got support from positive domestic equity markets and risk-on sentiments.

The rupee stayed range-bound and settled 2 paise higher at 83.26 against the U.S. dollar on Thursday as the American currency retreated from its elevated levels after the U.S. Federal Reserve was a bit dovish in its policy meeting.

Forex traders said the local unit got support from positive domestic equity markets and risk-on sentiments.

The U.S. Federal Reserve kept interest rates on hold and its Chairman Jerome Powell looked content with the economy's soft landing. Following the decision, the dollar index softened, and the 10-year bond yield fell to 4.70.

At the interbank foreign exchange, the rupee opened at 83.23 and finally settled at 83.26 against the greenback, registering a gain of 2 paise from its previous close.

During the day, the rupee witnessed range-bound trade reaching the peak of 83.19 and hitting the lowest level of 83.27 against the American currency.

On Wednesday, the rupee settled at 83.28 against the U.S. dollar and had hit an all-time low level of 83.35 against the American currency during intra-day.

“After Fed dovishness, U.S. dollar was still well bid against the rupee as ECB (External Commercial Borrowing) payments continued along with oil bids and FPI outflows. Dollar index fell to 106.20 while Asian currencies also gained.”