Rupee Settles 11ps Lower At 83.80/$

Mumbai: Rupee depreciated 11paise to settle at 83.80 against the US dollar on Monday, taking cues from equity markets that saw a steep fall of over 1 per cent amid volatile crude oil prices and outflow of foreign funds. However, a weak greenback against major currencies supported the local unit, forex traders said, while investors showed muted participation awaiting cues from domestic macroeconomic data to be released this week. At the same time, they said, monetary and fiscal stimulus announced by China triggered withdrawal of foreign funds as investors preferred better-performing Chinese markets. At the interbank foreign exchange, the local unit opened at 83.72 and hit the intra-day low of 83.81 against the greenback during the session. The unit finally settled at 83.80 against dollar, registering a loss of 11paise from its previous closing level.

On Friday, the rupee fell 3paise to settle at 83.69 against the American currency. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee declined on weak domestic markets.