Rupee Falls 12ps To 86.47/$

Mumbai: The rupee declined 12paise to settle at 86.47 against the US dollar on Thursday amid the strengthening American currency and continuous outflow of foreign funds. However, positive domestic equity markets and lower crude oil prices supported the Indian currency at lower level, forex traders said. At the interbank foreign exchange, the rupee opened at 86.46 and moved between high of 86.38 and low of 86.52 against the greenback during the session.

The local unit settled at 86.47 against the US dollar, registering a loss of 12paise from its previous close. On Wednesday, the rupee appreciated 23paise to close at 86.35 against the dollar. Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee declined on a strong US dollar and recovery in the US treasury yields. FII outflows too weighed down the local unit.

However, weak crude oil prices and positive domestic markets cushioned the downside. “Investors may remain cautious ahead of Bank of Japan’s monetary policy tomorrow. BoJ is expected to hike interest rates by 25 bps. USD-INR spot price is expected to trade in a range of Rs 86.20-86.80,” he said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07 per cent higher at 108.04. Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Wednesday, offloading shares worth Rs 4,026.25 crore, according to exchange data.