Rupee falls 4 paise to close at 81.34 against US dollar

The rupee depreciated by 4 paise to close at 81.34 (provisional) against the US dollar on Friday, tracking a rebound in crude oil prices and sustained foreign fund outflows.

Forex traders said positive macroeconomic data and broad weakness in the American currency supported the rupee and contained the depreciation bias. At the interbank foreign exchange market, the rupee opened on a weak note at 81.32 against the greenback, but lost ground and fell to an intra-day low of 81.45.

The domestic currency finally settled at 81.34, down 4 paise over its previous close of 81.30. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent lower at 102.18. Global oil benchmark Brent crude futures rose 0.42 per cent to USD 84.38 per barrel.

According to Dilip Parmar, Research Analyst, HDFC Securities, the Indian rupee registered the biggest weekly gains after November 11 on the back of better-than-expected economic data and broad-based weakness in the dollar. Risk assets globally rallied and the safe-haven US dollar slumped after the US inflation readings came lower than expected, Parmar said.