Rupee falls 20 paise to close at 95.38 against US dollar

The rupee depreciated 20 paise to close at 95.38 (provisional) against the US dollar on Monday, as a strengthening greenback weighed on emerging market currencies.

At the interbank foreign exchange market, the rupee opened at 95.25 against the American currency and traded in a range of 95.22-95.48 during the session.

The rupee finally closed at 95.38 (provisional), down 20 paise from its previous close.

On Friday, the rupee appreciated 17 paise to close at 95.18 against the US dollar.

“Indian rupee declined as the US Dollar firmed up, as markets continue to price in one rate hike this year. However, positive domestic markets and weakness in crude oil prices supported the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Choudhary further added that “hedging demand from importers may cap sharp upside. Traders may take cues from ISM services PMI data from the US. $/INR spot price is expected to trade in a range of 95.10 to 95.60”.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.12, up 0.26 per cent.