Rupee declines on macro jitters

Mumbai: The rupee depreciated 16 paise to close at 95.24 (provisional) against the US dollar, on slight gains in the US Dollar Index and a modest increase in US Treasury yields. Forex traders said the rupee was pressured by a slight recovery in the US Dollar Index and foreign fund outflows, even as lower crude oil prices provided some underlying support.

At the interbank foreign exchange, the rupee opened at 95.13 against the greenback and traded in a range of 95.12-95.24 during the session. It eventually settled at 95.24, lower by 16 paise from its previous close. On Wednesday, the rupee gained 20 paise to settle at 95.08 against the US dollar. “Indian Rupee declined today on a slight bounce in the US Dollar index and modest gains in the US treasury yields.

“However, weak crude oil prices and hopes of a deal between the US and Iran prevented a sharp fall,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan. Choudhary further said that the rupee is likely to trade with a slight positive bias on a rise in risk appetite in global markets amid hopes of a deal between the US and Iran.