Rupee settles 22ps lower at 90.20/$

Mumbai: The Indian rupee slipped below the 90-mark and settled the day lower by 22paise at 90.20 (provisional) against the US dollar on Friday, amid disappointing macroeconomic data and strengthening of the American currency in overseas markets. Forex traders said persistent foreign fund outflows and strong dollar demand from importers further dented investor sentiment.

However, weak crude oil prices and a surge in the domestic equities cushioned the downside, they said, adding that any intervention by the RBI may support the rupee at lower levels. At the interbank foreign exchange, the local unit opened at 89.95 against the dollar, and touched an intra-day low of 90.25 and a high of 89.92 during the session.

At the end of Friday’s trading session, the rupee was quoted at 90.20 (provisional) against the greenback, down 22 paise from its previous close. On Thursday, the rupee depreciated 10 paise to close at 89.98 against the US dollar. “Indian rupee fell on Friday, breaching the 90-mark once again amid disappointing macroeconomic data and a positive US dollar index. FII outflows too weighed on the rupee.

However, weak crude oil prices and a surge in the domestic equities cushioned the downside. RBI reportedly sold dollars via state-owned banks, which also prevented the pace of fall,” said Anuj Choudhary, Research Analyst, Commodities, Mirae Asset Sharekhan.

On the domestic macroeconomic front, India’s manufacturing sector activity witnessed the weakest improvement in two years in December, driven by softer expansions in new orders.