Rupee slips 4ps to 90.21/$

Mumbai: The rupee declined 4 paise to close at 90.21 (provisional) against the US dollar, weighed down by higher crude oil prices, a firm American currency and incessant outflow of foreign funds. Analysts said geopolitical tensions and weak equity markets also put pressure on the Indian currency.

At the interbank foreign exchange, the rupee opened at 90.24 and touched the intra-day low of 90.30 against the greenback.

The currency ended the session at 90.21 (provisional) against the dollar, down 4 paise from its previous close. On Monday, the rupee ended 1 paisa higher at 90.17 against the US dollar. Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said the rupee declined amid ongoing geopolitical tensions and global risk aversion.

Weak domestic markets, FII outflows and a surge in crude oil prices also pressurised the rupee. “However, optimism on the India-US trade deal and rising odds of a rate cut amid weak labour market reports last week may support the rupee at lower levels.

Any intervention by the central bank may also support the rupee. Traders are now focusing on US inflation data. USD-INR spot price is expected to trade in a range of 90.10 to 90.70,” Choudhary said.

Market sentiment improved after the new US envoy to India, Sergio Gor, on Monday said that both sides are actively engaged in firming up a trade deal, forex analysts said. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.07 per cent higher at 98.69.