The rupee on Tuesday traded in a narrow range and ended at 83.39 to the dollar against the previous close of 83.40 amid a stronger greenback overseas and firm crude oil prices.
While participants were expecting the Reserve Bank of India (RBI) to intervene in the markets and support the domestic currency, the unit was helped by dollar sales from exporters.
It opened at 83.37 and touched an intra-day high of 83.34.
The forex markets were closed Friday and Monday on account of 'Good Friday' and the annual account closing of banks.
Dealers said the domestic currency was under pressure as strong US manufacturing data gave more strength to the Dollar Index (DXY) which gauges the greenback's strength against a basket of six currencies.
The DXY on Tuesday opened at 105 and hit a day’s high of 105.10 after which it was trading at around 104.80 levels.
Another factor that led to the rupee coming under pressure was rising crude oil prices amid increased demand for the commodity.
Brent futures for June delivery were trading at $88.24 per barrel at the time of this report against the previous close of $87.42 a barrel. Weak equity markets also lent some bearishness.
"We expect the rupee to trade with a slight negative bias on the strong dollar and weak tone in domestic markets. Rising crude prices may also weigh on the domestic currency," Anuj Choudhary research analyst, Sharekhan by BNP Paribas, said.
