Rupee falls 9ps to 89.96/$

Mumbai: The rupee depreciated 9paise to close at 89.96 against the US dollar on Wednesday, tracking a negative trend in domestic equities and sustained foreign fund outflows.

Forex traders said investors are in a wait-and-watch mode, awaiting clarity from the US Federal Reserve before taking decisive positions.

Investors are also awaiting cues from the US-India trade talks, which could boost the rupee in the coming days. At the interbank foreign exchange market, the rupee opened at 90.00, then fell to an intra-day low of 90.10 against the US dollar and finally settled for the day at 89.96 (provisional), down 9 paise from its previous close.

On Tuesday, the rupee settled up 18 paise at 89.87 against the US dollar. “We expect the rupee to trade with a negative bias on weak domestic markets and FII outflows, which continue to pressurise the rupee. Delay in trade deal between India and US may further dent the rupee,” Anuj Choudhary, Research analyst, Mirae Asset ShareKhan, said.

Commerce and Industry Minister Piyush Goyal on Wednesday said talks with the US on the proposed bilateral trade agreement are progressing. “Talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement,” he said.

A delegation led by Deputy US Trade Representative (USTR) Rick Switzer is in the national capital for two-day trade talks with his Indian counterpart Rajesh Agrawal.