Rupee falls 3ps to 83.96/$

Mumbai: The rupee depreciated 3paise to close at 83.96 against the American currency on Wednesday, amidst strong dollar demand from importers particularly oil companies. Forex traders said a positive trend in domestic equities, foreign fund inflows and overnight decline in crude oil prices cushioned the downside. At the interbank foreign exchange market, the local unit opened at 83.94 and touched an intra-day low of 83.97 against the US dollar. The domestic currency finally settled at 83.96, 3paise lower from its previous close. On Tuesday, the rupee depreciated by 6paise to close at 83.93 against the American currency.

“We expect the rupee to trade with a slight negative bias on recovery in the US dollar and month-end dollar demand from oil marketing companies (OMCs) and importers,” said Anuj Choudhary -- Research Analyst at Sharekhan by BNP Paribas. Choudhary further noted that rise in global risk sentiments amid dovish Fed speak and rising expectations of a rate cut by the US Fed in September may support the rupee.