Rupee Plunges 15ps To 84.44/$

Mumbai: The rupee declined sharply by 15paise to close at 84.44 against the US dollar on Wednesday amid uncertainties surrounding US President-elect Donald Trump’s trade policies and an increase in crude oil prices. However, a strong show at the domestic equity markets, FII inflows along with a weakening dollar against major currencies supported the local unit at lower level, according to forex traders. At the interbank currency exchange, the rupee opened at 84.38, lower by 9paise from its previous close, but declined to an intra-day low of 84.48 during the session. It settled at 84.44, 15paise lower than Tuesday’s close of 84.29.

According to analysts, US President-elect Donald Trump’s indication of adopting aggressive trade policies added to the volatility in the currency. “Rupee lost all its sheen it had gained on Wednesday and fell to 84.48 before recovering as RBI sold dollars... but dollars were bought again on account of month-end demand and it (rupee) closed lower,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.