Rupee declines 14ps to 90.70/$

Mumbai: The rupee depreciated 14paise to close at 90.70 against the US dollar, on dollar demand from importers and geopolitical tensions. Forex traders said the rupee is trading with a slight negative bias amid geopolitical tensions and elevated crude oil prices.

Dollar demand from importers may also pressurise the rupee. However, FPI inflows may support the local unit at lower levels. At the interbank foreign exchange market, the rupee opened at 90.56 against the US dollar, and touched a low of 90.75 and a high of 90.46 against the greenback in intraday trade.

The rupee eventually settled at 90.70, registering a fall of 14 paise over its previous close. On Tuesday, the rupee pared initial losses and settled on a positive note, higher by 10 paise at 90.56 against the US dollar. “Indian rupee declined today on dollar demand from importers and geopolitical tensions.

A surge in crude oil prices, too, weighed on the rupee. However, a weak US dollar and foreign inflows cushioned the downside. Dollar weakened on disappointing ADP non-farm employment and retail sales data from the US,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Forex traders said while markets initially welcomed the India-US trade deal, fresh concerns have emerged after the White House released its fact sheet. The fact sheet highlights key terms of the agreement, including that India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products.