Mumbai: The rupee fell 2paise to close at 95.76 against the US dollar on Wednesday as a sharp rise in global crude oil prices amid heightened tensions in West Asia kept markets on edge.
A sharp decline in domestic equity markets put further pressure on the local unit, while RBI intervention and foreign fund inflows lent support, according to forex traders.
At the interbank foreign exchange, the rupee opened at 95.72 and traded in a very narrow range of 95.72-95.76. It eventually settled at 95.76, down 2 paise from its previous close.
The rupee depreciated 13 paise to close at 95.74 against the US dollar on Tuesday. “Rupee has mildly depreciated against the dollar due to higher crude oil prices and strong US bond yields.
So long as crude oil prices remain elevated, rupee will continue to be mildly weak,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.
