Rupee slumps 18ps to 85.50/$

Mumbai: The rupee depreciated 18paise to close at 85.50 against the US dollar on Thursday, weighed down by demand for American dollars from importers and foreign fund outflows. Forex traders the rupee declined on dollar demand. However, a surge in the domestic markets and overnight weakness in crude oil prices cushioned the downside. At the interbank foreign exchange, the domestic unit opened at 85.53 and moved between an intra-day high of 85.48 and a low of 85.73 against the greenback. The unit ended the session lower at 85.50, registering a fall of 18paise over its previous closing level. On Wednesday, the rupee pared most of its initial gains and ended the day higher by 4paise at 85.32 against the American currency. Over the past two trading sessions, the rupee opened on a bullish note, but pared most of the gains and settled with marginal gains against the greenback. After a firm opening, it rose to near 84.62 on Tuesday and 85.05 on Wednesday, and lost momentum during the trading session. Going ahead, Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said “we expect the rupee to trade with a positive bias amid positive domestic markets and rise in risk appetite in global markets. Easing geopolitical tensions between India and Pakistan and easing trade tariff tensions between the US and China may also support the rupee”.