Re falls 15 paise to 83.21/USD

New Delhi: The rupee depreciated 15 paise to close at 83.21 (provisional) against the US dollar on Tuesday, as a strong US dollar and weak domestic equities dented investor sentiments.

Forex traders said muted domestic macroeconomic data and sustained FII outflows also mounted downside pressure on rupee. At the interbank foreign exchange market, the local unit opened at 83.21 against the US dollar and moved in a range of 83.23 to 83.17. The rupee finally settled at 83.21 (provisional) against the US dollar, down 15 paise from its previous close.

On Friday, the rupee appreciated 13 paise to settle at 83.06 against the US dollar. On Monday, the domestic forex market was closed on account of Mahatma Gandhi Jayanti. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.14 per cent to 104.05. Brent crude futures, the global oil benchmark, declined 0.02 per cent to $90.69 per barrel. “We expect the rupee to trade with a negative bias as the hawkish Fed speak and a strong dollar may continue to put downward pressure on the rupee. Risk aversion in global markets may further weigh on the domestic currency,” said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

Choudhary further said that decline in crude oil prices and any selling of dollars by RBI may support rupee at lower levels. “Traders may take cues from JOLTS job openings data from the US. Investors may remain cautious ahead of the RBI’s monetary policy meeting later this week. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.70,” Choudhary said.