Rupee Declines 27ps To 85.37/$

Mumbai: The rupee depreciated 27paise to 85.37 against the US dollar on Tuesday, tracking a recovery in American currency index, negative domestic equity market and muted foreign fund inflow. According to forex analysts, investors also moved cautiously awaiting domestic industrial and manufacturing production data for April as well as the first quarter GDP growth numbers to be released this week. At the interbank foreign exchange, the domestic unit opened at 85.15 and moved between the high of 85.11 and the low of 85.45 against the greenback during intraday trade. The unit settled at 85.37 against the dollar, registering a loss of 27paise over its previous close. The rupee closed 35paise higher at 85.10 against the greenback on Monday, after gaining 50paise in the preceding session on Friday. Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee fell on weak domestic equities and positive US dollar index. Muted foreign inflows also weighed on the rupee. “Month-end dollar demand from importers may also pressurise the domestic unit. However, overall weakness in the US dollar index and improved global risk sentiments may support the rupee. USD-INR spot price is expected to trade in a range of 85 to 85.70,” he added.