Rupee falls 11ps to 86.33/$

Mumbai: The rupee depreciated 11paise to close at 86.33 against the US dollar on Monday, as strong dollar demand and a muted trend in domestic equities weighed on investors’ sentiments. Forex traders said the Indian rupee gained on Friday but opened on a lower note on Monday as ‘Trump Tariffs’ uncertainty gained, while sustained foreign fund outflows dented investor sentiments further. Moreover, the upcoming Union Budget will play a crucial role in shaping market sentiment and the rupee’s trajectory, as expectations are high for favourable measures aimed at rekindling foreign investments, traders said. At the interbank foreign exchange, the rupee opened on a weak note at 86.35, and during the day touched a high of 86.33 and a low of 86.45 against the American currency. The local unit settled for the day at 86.33, registering a fall of 11paise over its previous close. On Friday, the rupee appreciated 22paise to close at 86.22 against the US dollar. “We expect the rupee to trade with negative bias on positive US dollar and weak tone in the domestic markets. Persistent FII outflows and importer demand for dollars may continue to pressurise the rupee”.