The rupee snapped its two-day winning streak and closed 6 paise lower at 73.91 against the US currency on Wednesday due to forex outflows and a stronger dollar in overseas markets.
Gains in Indian equities and the Covid relief steps announced by the RBI on Wednesday restricted the rupee’s fall.
The dollar rose to a two-week high in global markets after US Treasury Secretary Janet Yellen suggested a rate hike to stop the US economy from overheating.
According to Dilip Parmar, Research Analyst at HDFC Securities, the rupee fell in line with Asian currencies amid stronger dollar. However, the rupee manages to recoup some of intra-day losses after the RBI announced new loan relief measures along with liquidity support.