The rupee depreciated by 6 paise to close at 73.02 against the US dollar on Monday due to fiscal concerns after the government projected a higher fiscal deficit for 2020-21 and increased borrowing in the budget presented by Finance Minister Nirmala Sitharaman.
A stronger dollar in overseas markets and firm oil prices also weighed on the rupee sentiment. A strong rally in equity markets, however, limited the rupee losses.
At the interbank forex market, the domestic unit opened at 72.89 against the US dollar and witnessed an intra-day high of 72.84 and a low of 73.15. The local unit finally settled at 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on the Budget day.