Mumbai: The rupee consolidated in a narrow range and settled for the day lower by 2 paise at 83.97 (provisional) against the American currency on Monday, as market participants remained on the sidelines ahead of the release of key domestic macroeconomic data.

Forex traders said the Indian rupee declined on a positive tone in the US dollar and a surge in crude oil prices.

At the interbank foreign exchange market, the local unit opened at 83.95 and touched an intraday low of 83.98 and finally settled at 83.97 (provisional) against the American currency, lower by 2 paise from its previous close.

On Friday, the rupee settled for the day higher by 2 paise at 83.95 against US dollar.

“We expect the rupee to trade with a slight negative bias on strength in the US dollar and rising global crude oil prices. Selling pressure from foreign investors and geopolitical tensions in the Middle East may further pressurise the rupee,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Forex traders said for the USD/INR pair 84.00 level is acting as a psychological resistance. Market participants are also awaiting cues from the Indian CPI inflation and IIP numbers scheduled to be released later in the day.

Moreover, investors may remain cautious ahead of US CPI, retail sales and consumer confidence data from the US this week. “USD-INR spot price is expected to trade in a range of Rs 83.75 to Rs 84.25,” Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent higher at 103.18.