Rupee Falls 2ps To 87.21/$

Mumbai: Rupee depreciated 2paise to close at 87.21 against US dollar as a muted trend in domestic markets and persistent foreign fund outflows weighed on investor sentiments. Forex traders said the latest tariff announcements from the US have sent shockwaves through global markets, strengthening the dollar. Moreover, month-end dollar demand also boosted the American currency. At the interbank foreign exchange, the rupee opened at 87.26 and touched the high of 87.12 against the greenback during intraday. It also touched the low of 87.41 before ending the session at 87.21 against the dollar, registering a loss of 2paise from its previous close. On Tuesday, the rupee fell sharply by 47paise to settle at 87.19 against the US dollar. On Wednesday, equity, forex, commodity markets were closed on account of Mahashivratri. “We expect the rupee to trade with a negative bias on account of weakness in the domestic markets and sustained outflows by FIIs. Any further pullback in the US dollar may also pressurise the rupee. However, any intervention by the RBI and weakness in crude oil prices may support the rupee at lower levels,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan. Choudhary further noted that traders may take cues from US GDP data. “Investors may remain cautious ahead of the core PCE price index data. USD-INR spot price is expected to trade in a range of 87 to 87.60,” he said.