Re falls 3 paise to 83.23/USD
However, softening of US dollar cushioned the downside loss for local unit
Mumbai: The rupee depreciated three paise to settle at 83.23 (provisional) against the US dollar on Wednesday, as a muted trend in domestic equities and sustained foreign fund outflows weighed on investor sentiments.
Forex traders said the strength of the American currency in the overseas market further dented investor sentiments. At the interbank foreign exchange market, the local unit opened at 83.22 against the US dollar and moved in a range of 83.27 to 83.19. The rupee finally settled at 83.23 (provisional) against the US dollar, down 3 paise from its previous close. On Tuesday, the rupee had settled at 83.20 against the dollar.
“The Indian rupee declined on weak domestic markets and further selling by FIIs. However, softening of US dollar cushioned the downside. The US dollar eased from a near 11-month high as investors are likely to narrow their positions ahead of US non-farm payrolls data later this week. “We expect the rupee to trade with a negative bias amid risk aversion in global markets and a hawkish tone of most Federal Reserve officials,” said Anuj Choudhary, research analyst at Sharekhan by BNP Paribas.
