Re falls for 2nd day
image for illustrative purpose
The rupee stayed on the downward track for the second straight day to settle 14 paise lower at 83.27 (provisional) against the US dollar on Tuesday due to a firm greenback against major currencies overseas and persistent foreign capital outflows.
Besides, weak equity market sentiment and elevated levels of crude oil prices -- hovering above $92 a barrel -- weighed on the domestic currency, forex traders said. At the interbank foreign exchange, the domestic unit opened at 83.19 and traded between a high of 83.17 and a low of 83.27 against the greenback during the day. It finally settled at 83.27 (provisional), registering a fall of 14 paise from its previous close. On Monday, the rupee declined by 19 paise to close at 83.13 against the dollar. Analysts attributed the downward movement of the rupee to a strengthening dollar amid weak Asian markets and rising US Treasury yields. The US dollar surged to a ten-month high level after a Federal Reserve policymaker hinted at a longer interest rate hike due to resilience in the US economy. The 10-year US treasury yields also rose to a 16-year high.
