Rupee settles 6 paise lower at 71.37 against US dollar

The Indian rupee on Friday fell by 6 paise to close at 71.37 (provisional) against the US dollar tracking heavy selling in domestic equities and strengthening of the American currency in the overseas market.

Forex traders said the rupee consolidated in a narrow range as strengthening of the US dollar, rise in crude oil prices and heavy selling in domestic equities weighed on the local unit.

At the interbank foreign exchange market, the local currency opened on a positive note at 71.29. During the day, it lost ground and touched a low of 71.41 and finally settled 6 paise lower at 71.37 against the US currency.

The domestic unit had settled at 71.31 against US dollar on Thursday.

On a weekly basis, the rupee has gained 3 paise.

"Along with stronger American dollar, series of weak domestic economic data and higher crude oil prices weighed on Indian rupee in today's session," said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.

Sharma further noted that "spot USDINR has been consolidating in the range of 70.70 to 71.12, the high and low of January months. We believe rupee can hold the same range this month in absence of new triggers".