Rupee falls 8ps to 89.98/$

Mumbai: The rupee depreciated eight paise to close at 89.98 (provisional) against the US dollar, weighed down by foreign fund outflows and a negative trend in domestic equities. Forex traders said persistent capital withdrawals from foreign investors, alongside heightened dollar demand from importers, dented investor sentiments.

At the interbank foreign exchange, the local unit opened at 89.95 against the dollar and touched an intra-day low of 89.99 and a high of 89.88. At the end of Monday’s trading session, the rupee was quoted at 89.98 (provisional) against the greenback. On Friday, the rupee depreciated 19paise to close at 89.90 against the US dollar.

“Traders may watch out for Federal Open Market Committee (FOMC) minutes and core PCE (Personal Consumption Expenditures) price index data from the US this week. USD-INR spot price is expected to trade in a range of 89.60 to 90.20,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally higher by 0.02 per cent at 98.03, as most markets are in a holiday mood and trading volumes are thin, limiting big moves and keeping the DXY range-bound.

Forex traders said the USD/INR pair is trading under pressure due to multiple factors, including a shift toward risk aversion, driven by persistent capital withdrawals from foreign investors ahead of the holiday break, alongside heightened greenback demand from importers.