The rupee depreciated 7 paise to close at 73.35 against the US dollar on Tuesday, tracking muted domestic equities and a strengthening greenback overseas.
At the interbank forex market, the rupee opened on a weak note at 73.41, and shuttled between a high of 73.32 and a low of 73.41 against the American currency.
It finally finished at 73.35, down 7 paise over its previous close of 73.28.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18 per cent to 93.23. Forex traders said the rupee dropped for the second straight session as investors remained cautious following muted domestic macroeconomic data.
Rising food prices pushed retail inflation to an eight-month high of 7.34 per cent in September, above the RBI’s comfort level, while industrial output contracted 8 per cent in August, official data showed on Monday.