Rupee falls 7ps to 88.03/$

Mumbai: The rupee pared initial gains and settled for the day lower by 7 paise at 88.03 (provisional) against the US dollar, weighed down by trade tensions and global uncertainties. Forex traders said renewed foreign fund inflows and lower crude oil prices boosted investor sentiment further and restricted the downfall. At the interbank foreign exchange, the rupee opened below the 88-mark at 87.91 against the greenback and touched an intraday high of 87.75.

The domestic unit finally settled at 88.03 (provisional), registering a fall of 7 paise from its previous close. On Thursday, the rupee appreciated 12 paise to close at 87.96 against the US dollar, logging gains for the second straight session.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.11 per cent lower at 98.22. India on Thursday said it is “broad-basing and diversifying” its sourcing of energy to meet market conditions, hours after US President Donald Trump claimed that Prime Minister Narendra Modi assured him that New Delhi will stop procuring Russian crude oil.

India’s continuing purchase of petroleum products from Russia notwithstanding Western sanctions has become a major issue that resulted in severe downturn in ties between New Delhi and Washington.