Mumbai: The rupee fell 4 paise to close at 83.48 against the US dollar on Tuesday due to a strong greenback in the overseas market and rise in global crude oil prices.
Besides, a soft trend in domestic equities and foreign fund outflows weighed on investor sentiments, forex traders said.
At the interbank foreign exchange market, the local unit opened at 83.51 and hit an intraday high of 83.47 and low of 83.56 against the American currency during the session.
It finally closed at 83.48 against the dollar, which is 4 paise less than its previous close.
On Monday, the rupee fell 10 paise to close at 83.44 against the US dollar.
"We expect the rupee to trade with a slight negative bias as strengthening US dollar and rise in crude oil prices may keep the rupee under pressure," said Anuj Chaudhary, Research Analyst at Sharekhan by BNP Paribas.
Chaudhary further said that overall positive trend in domestic markets and expectations of fresh foreign inflows may support the rupee at lower levels. Traders can take cues from Fed Chairman Jerome Powell's speech and JOLTS job opening data from the US.
“USD/INR spot price is expected to remain in the range of Rs 83.20 to Rs 83.75,” Choudhary said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 percent higher at 105.99.
Global oil benchmark Brent crude futures were trading 0.76 per cent higher at US$87.26 per barrel.
In the domestic equity market, the 30-share BSE Sensex closed at a new peak of 79,441.45 points, falling 34.74 points or 0.04 percent. The broader NSE Nifty fell 18.10 points or 0.07 per cent to 24,123.85.
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday as they sold shares worth Rs 2,000.12 crore, according to exchange data.
Besides, a soft trend in domestic equities and foreign fund outflows weighed on investor sentiments, forex traders said.
At the interbank foreign exchange market, the local unit opened at 83.51 and hit an intraday high of 83.47 and low of 83.56 against the American currency during the session.
It finally closed at 83.48 against the dollar, which is 4 paise less than its previous close.
On Monday, the rupee fell 10 paise to close at 83.44 against the US dollar.
"We expect the rupee to trade with a slight negative bias as strengthening US dollar and rise in crude oil prices may keep the rupee under pressure," said Anuj Chaudhary, Research Analyst at Sharekhan by BNP Paribas.
Chaudhary further said that overall positive trend in domestic markets and expectations of fresh foreign inflows may support the rupee at lower levels. Traders can take cues from Fed Chairman Jerome Powell's speech and JOLTS job opening data from the US.
“USD/INR spot price is expected to remain in the range of Rs 83.20 to Rs 83.75,” Choudhary said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 percent higher at 105.99.
Global oil benchmark Brent crude futures were trading 0.76 per cent higher at US$87.26 per barrel.
In the domestic equity market, the 30-share BSE Sensex closed at a new peak of 79,441.45 points, falling 34.74 points or 0.04 percent. The broader NSE Nifty fell 18.10 points or 0.07 per cent to 24,123.85.
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday as they sold shares worth Rs 2,000.12 crore, according to exchange data.
