Rupee recovers from all-time low, rises 6 paise to close at 83.72 against US dollar

The rupee recovered from its all-time low level and appreciated 6 paise to 83.72 (provisional) against the US dollar on Friday, on strength in the domestic markets and expectations of fresh foreign inflows.

Forex traders said the rupee traded within a narrow range, taking cues from the dollar index, which remained flat.

At the interbank foreign exchange market, the local unit opened at 83.72 and touched an intra-day high of 83.69 and a low of 83.73 against the dollar during the session.

It finally settled at 83.72 (provisional) against the American currency, up 6 paisa from its previous close.

On Thursday, the rupee dropped 7 paise to close at an all-time low of 83.78 against the US dollar.

"Market participants are focused on the Personal Consumption Expenditures (PCE) Price Index, with significant attention on the upcoming US FED policy meeting on July 31," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Trivedi further said the anticipation of an interest rate cut in the September policy could add pressure on the dollar, especially if hints are given during the July-end policy. "The rupee is expected to continue its sideways range between 83.60 and 83.80," he said.

In the domestic equity market, the 30-share BSE Sensex rose 1,292.92 points, or 1.62 per cent, to settle at 81,332.72 points, and Nifty advanced 428.75 points, or 1.76 per cent, to 24,834.85 points.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 104.33, lower by 0.02 per cent.

Brent crude futures, the global oil benchmark, fell 0.49 per cent to USD 81.97 per barrel.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 2,605.49 crore, according to exchange data.