Rupee Falls 3ps To 84.32/$
The overall strength of the US dollar and elevated oil prices are likely to strain India’s trade balance, creating challenges for the local unit
Rupee Falls 3ps To 84.32/$
Mumbai: Rupee fell 3paise to close at 84.32 against US dollar on Tuesday, as the greenback strengthened on Donald Trump’s tariff plans and a muted trend in domestic equities. Forex traders said US President elect Donald Trump’s comments that he would impose additional 10 per cent tariffs on Chinese goods and impose a 25 per cent levy on imports from Mexico and Canada has affected risk sentiment.
Traders are also awaiting the Federal Open Market Committee (FOMC) minutes of the November 7 meeting for further cues. At the interbank foreign exchange, the rupee opened at 84.27 and touched an intra-day high of 84.22 and low of 84.35 against the greenback. The unit ended the session at 84.32 against the dollar, registering a fall of 3paise over its previous close. On Monday, the rupee appreciated 12paise to close at 84.29 against US dollar. “Traders look forward to the FOMC minutes of the November 7 meeting to be released later tonight.
The USD-INR pair may continue to trade in the 84-84.50 in the short term. Interim support is at 84.11,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.06 per cent at 106.87.
