Re falls 12ps to 88.14/$

Mumbai: The rupee fell 12 paise to close at 88.14 against the US dollar amid sustained foreign fund outflows and a stronger greenback. However, positive sentiment in the domestic equity markets -- which were buoyed by the GST rate revision -- and a drop in international crude oil prices prevented sharper losses in the local unit, according to forex traders.

At the interbank foreign exchange, the rupee opened at 88.09 against the US dollar and traded in the range of 87.85-88.19 before settling at 88.14, down 12paise from its previous close. The rupee recovered 13paise from its all-time low level to settle at 88.02 against the US dollar. “The rupee fell after rising in the morning as equities were unable to sustain their gains while the Reserve Bank of India sold dollars at the higher end and FPIs continued to be dollar buyers and equity sellers,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

“US tariff concerns, along with capital outflows, have been constantly weighing on sentiments of rupee, which has not been able to show any gains except sporadically. The revisions to GST... led to a marginal improvement early in the morning,” he said. Bhansali said the local unit is expected to trade in the range of 87.80 to 88.50.