Today, the rupee fell 18 paise to close at 81.85 (provisional) against the US dollar, owing to dollar demand from importers and a recovery in crude oil prices.
Forex traders said that continued foreign fund outflows, as well as concerns about rising COVID-19 cases in China, weighed on investor sentiment.
The local unit opened at 81.81 on the interbank foreign exchange market and later reached an intraday high of 81.74 and a low of 81.87 during the session.
The domestic unit eventually settled at 81.85 against the US dollar, down 18 paise from its previous close of 81.67.
However, a weak US dollar and strong domestic markets cushioned the blow. The US dollar fell on Tuesday as investors hoped the Fed would slow its rate hike pace.
The dollar index, which measures the strength of the US currency against a basket of six currencies, fell 0.21% to 106.99.
Brent crude futures rose 0.91% to $89.16 per barrel, the global oil benchmark.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in capital markets on Tuesday, offloading shares worth Rs.697.83 crore.
Traders may look to the manufacturing and services PMI, durable goods orders, and new home sales data for guidance. Mr. Choudhary added that they will remain cautious ahead of the Federal Open Market Committee (FOMC) meeting minutes later today.
The 30-share BSE Sensex rose 91.62 points, or 0.15%, to end at 61,510.58, while the broader NSE Nifty advanced 23.05 points, or 0.13%, to 18,267.25.
Source:TH