Rupee falls 3 paise to close at 88.12 against US dollar

Mumbai: The rupee pared initial gains to settle 3 paise lower at 88.12 (provisional) against the US dollar on Tuesday, tracking persistent foreign portfolio outflows and global trade tensions.

Forex traders said the rupee remained under pressure on worries over US tariffs on India and global trade uncertainties.

Moreover, sustained foreign fund outflows also dented investor sentiments. At the interbank foreign exchange, the rupee opened at 87.98 against the US dollar and touched an intraday low level of 88.19 before ending the session at 88.12 (provisional), down 3 paise from its previous close. On Friday, the rupee touched the lowest-ever intraday level of 88.38 but pared all losses before ending 3 paise higher at Rs88.09 against the US dollar.

The unit had recorded its all-time low closing level of 88.15 against the dollar on September 2. The forex market was closed on Monday, as the Maharashtra government had declared a public holiday on account of Eid-e-Milad on September 8, instead of September 5.

“We expect the rupee to trade with a negative bias as the trade tariff issue between India and the US may continue to pressure the rupee.

Though there are signs of thawing, till there is no announcement, market sentiments may continue to remain dented,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.