Currency Market Update: Rupee falls 4 paise to settle at 83.70 vs dollar

The rupee declined 4 paise to settle at 83.70 (provisional) against the US dollar on Friday amid subdued domestic equity markets and increased month-end demand for the American currency.

However, sliding crude prices in the international market and renewed foreign fund inflows supported the local unit and restricted the fall, forex dealers said.

At the interbank foreign exchange, the local unit opened at 83.64 and moved between the high of 83.62 and the low of 83.71 during the session. The local unit finally settled at 83.70 (provisional) against the dollar, registering a loss of 4 paise from its previous close.

On Thursday, the rupee declined 8 paise to settle at 83.66 against the American currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 100.30.

Analysts said the market participants were awaiting cues from the personal consumption expenditure data to be released in the US on Friday.

Brent crude, the international benchmark, fell 0.03 per cent to 71.58 in futures trade.

On the domestic equity markets front, the Sensex fell 264.27 points or 0.31 per cent to settle at 85,571.85, while the Nifty declined 37.10 points or 0.14 per cent to 26,178.95.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, purchasing shares worth Rs 629.96 crore, according to exchange data.