Rupee settles on flat note, higher by 2 paise at 83.50 against U.S. dollar

The rupee consolidated in a narrow range and settled for the day on a flat note, higher by 2 paise.

The rupee consolidated in a narrow range and settled for the day on a flat note, higher by 2 paise at 83.50 (provisional) against the U.S. dollar on May 09, on weak domestic markets and a strong American currency.

Forex traders said massive foreign fund outflows dented investors' sentiments.

At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.49, and touched an intraday high of 83.44. The local unit finally settled for the day at 83.50 (provisional), higher by 2 paise over its previous close.

On Wednesday, the rupee stayed range-bound and settled 1 paisa lower at 83.52 against the U.S. dollar.

"The Indian rupee traded flat on weak domestic markets and a strong U.S. dollar. The overnight jump in crude oil prices also put pressure on the rupee. However, likely dollar inflows supported the rupee earlier in the day," said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 105.70, higher by 0.15%, as the U.S. dollar gained on hawkish Fedspeak and geopolitical tensions in the Middle East.

"We expect the rupee to trade with a slight negative bias amid strength in the U.S. dollar and selling pressure by foreign investors. However, mixed to positive Asian and European markets may support the rupee at lower levels.