Rupee falls 3ps to 88.73/$

New Delhi: The rupee fell three paise to close at 88.73 (provisional) against the US dollar, weighed down by the strength of the American currency and rising crude oil prices.

Forex traders said a rebound in domestic equities following a sweeping mandate for the ruling alliance in the Bihar polls supported the rupee at lower levels. At the interbank foreign exchange market, the rupee opened at 88.70 against the US dollar. During the day, the domestic unit witnessed an intra-day low of 88.75 against the greenback.

The rupee finally settled for the day at 88.73 (provisional), down three paise over its previous close. On Thursday, the rupee settled eight paise lower at 88.70 against the US dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.12 per cent higher at 99.27.

On the domestic macroeconomic front, wholesale price inflation fell to a 27-month low of (-) 1.21 per cent in October, led by a sharp deflation in food items like pulses and vegetables, and lower prices of fuel and manufactured items.

Wholesale Price Index (WPI)-based inflation was 0.13 per cent in September and 2.75 per cent in October last year, government data showed on Friday.

Meanwhile, Moody’s Ratings on Thursday projected India’s economy to grow at 7 per cent in 2025 and 6.5 per cent in the next year, supported by domestic and export diversification, amid a neutral-to-easy monetary policy stance.