Rupee falls 3ps to 89.70/$

Mumbai: The rupee pared initial gains and settled for the day in the negative territory, down 3paise at 89.70 (provisional) against the US dollar, as the support from positive domestic equities was negated by a recovery in crude oil prices.

Forex traders said the lack of progress in the US–India trade negotiations weighed on the sentiment, while a weak tone in the US dollar index supported the domestic unit at lower levels.

At the interbank foreign exchange, the rupee opened at 89.53 against the US dollar, then touched an intra-day high of 89.45, registering a 22-paise gain from its previous close. At the end of the trading session on Monday, the rupee was quoted at 89.70 (provisional), down 3paise from its previous close.

On Friday, the rupee appreciated by 53paise to 89.67 against the US dollar. “We expect the rupee to trade with a positive bias on a weak US dollar and strength in the domestic markets. We may not see a lot of fresh FII outflows ahead of new year holidays.

However, delay in trade deal between India and US may continue to weigh on the rupee at higher levels,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan. Choudhary further noted that investors may watch out for US GDP data.

USD-INR spot price is expected to trade in a range of 89.20 to 89.80. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent lower at 98.52.