Rupee rises 8 paise to 83.79 against US dollar

The Indian rupee stayed firm for the second straight session and settled 8 paise higher at 83.79 (provisional) against the US dollar on Tuesday, buoyed by positive domestic equity markets, weak American currency, and lower crude oil prices. Forex traders said, foreign fund outflow, however, resisted a sharp rise in the local unit.

At the interbank foreign exchange, the rupee opened at 83.86 against the greenback and traded in the range of 83.76 to 83.88. The unit finally settled at 83.79 (provisional) against the dollar, registering a gain of 8 paise from its previous closing level. On Monday, the rupee settled 8 paise higher at 83.87 against the American currency.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee rose to the highest levels in nearly two and a half weeks on a weak US dollar and positive domestic markets. "A decline in crude oil prices also supported the rupee. However, FII outflows capped sharp gains. " Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.04 percent to 101.68.

Analysts said the US dollar declined to a seven-month low on rising odds of a rate cut by the Federal Reserve."USD-INR spot price is expected to trade in a range of Rs 83.50 to Rs 84," Choudhary said, adding that concerns over upcoming PMI data from the US and Federal Reserve Chair Jerome Powell's speech at Jackson Hole Symposium later this week may keep investors awaiting for further cues.

Brent crude, the global oil benchmark, declined 0.31 percent to USD 77.42 per barrel. On the domestic equity market front, Sensex climbed 378.18 points, or 0.47 percent, to 80,802.86 points. The Nifty rose 126.20 points, or 0.51 percent, to 24,698.85 points. Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday, offloading shares worth Rs 2,667.46 crore, according to exchange data