Rupee Declines 21ps To 85.60/$

Mumbai: The rupee declined 21paise to settle at 85.60 against the US dollar on Tuesday, weighed down by a firm American currency and outflow of foreign funds. According to forex traders, the local unit remained under pressure tracking negative domestic equity markets amid geopolitical uncertainties. Investors are also awaiting cues from the Reserve Bank’s monetary policy announcements. RBI’s Monetary Policy Committee (MPC) will begin deliberations on its bi-monthly policy on Wednesday and the outcome is scheduled to be announced on June 6. At the interbank foreign exchange, the domestic unit opened at 85.55 and moved between the high of 85.44 and a low of 85.60 against the greenback during the day. The unit closed the session at 85.60 against the dollar, registering a loss of 21paise from its previous close. On Monday, the rupee appreciated 16paise to settle at 85.39 against the dollar. Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee weakened against the dollar on weak domestic equities and FII outflows. “Trade tensions between US and China and renewed geopolitical tensions between Ukraine and Russia may also weigh on the domestic unit. Traders may take cues from job openings and factory orders data from the US,” Choudhary said, adding, “USD-INR spot price is expected to trade in a range of 85.20 to 85.90.”