Rupee falls 5ps to 83.96/$

Mumbai: The rupee declined 5paise to 83.96 against the US dollar on Tuesday, tracking a strong greenback against major currencies overseas and a sluggish trend in domestic equities. However, lower crude oil prices in international markets capped the decline in the local unit, forex traders said. At the interbank foreign exchange market, the rupee opened 3 paise lower at 83.94 against the American currency and traded in the range of 83.94-83.98 during the day. It finally settled at 83.96 against the US dollar, 5paise lower than its previous close.

On Monday, the domestic currency settled at 83.91. “The rupee in tandem with Asian currencies fell to its support zone of 83.97 as the Reserve Bank of India seemed to present at 83.97 to protect any further weakness in the currency. There was good amount of FPI and oil companies outflow which resulted in the rupee reaching near to the all-time low of 83.97,” Anil Kumar Bhansali, Head of Treasury and Executive Director of Finrex Treasury Advisors LLP, said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.15 per cent at 101.80. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth Rs 1,735.46 crore, according to exchange data.