Rupee falls 28 paise to close at Rs 94.84 against US dollar

The rupee fell 28 paise to close at 94.84 (provisional) against the American currency on Tuesday as geopolitical tensions in West Asia and rising Brent crude prices nearing $99 per barrel weighed on investor sentiment.

Forex traders said the Indian rupee declined on a surge in crude oil prices amid fresh attacks on Aramco’s facilities by Yemen’s Houthis.

Moreover, rising geopolitical tensions in West Asia and a weak trend in domestic equities further pressured the rupee. At the interbank foreign exchange market, the rupee opened at 94.49 against the US dollar.

The local unit touched an intraday high of 94.49 and a low of 94.89. The rupee finally settled at 94.84 (provisional), down 28 paise from its previous close. On Monday, the rupee fell 13 paise to close at 94.56 against the American currency. “We expect the rupee to trade with a slight negative bias on escalation of tensions in West Asia and worries over rising crude oil prices. Risk aversion in global markets may also pressurise the rupee.

“However, a weak dollar and foreign inflows may support the rupee at lower levels. Investors may now focus on inflation data from the US and India.

Price is expected to trade in a range of 94.60 to 95.10,” Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan, said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.96, lower by 0.21 per cent.

Brent crude, the global oil benchmark, was trading higher by 1.39 per cent at $98.35 per barrel in futures trade.