Rupee down 8 paise, closes at 89.98 amid foreign fund outflow

Mumbai: The rupee depreciated eight paise to close at 89.98 against the US dollar on Monday, weighed down by foreign fund outflows and a negative trend in domestic equities. Forex traders said persistent capital withdrawals from foreign investors, alongside heightened dollar demand from importers, dented investor sentiments.

At the interbank foreign exchange, the local unit opened at 89.95 against the dollar and touched an intra-day low of 89.99 and a high of 89.88. At the end of Monday’s trading session, the rupee was quoted at 89.98 against the greenback.

On Friday, the rupee depreciated 19 paise to close at 89.90 against the US dollar.

“Traders may watch out for Federal Open Market Committee (FOMC) minutes and core PCE (Personal Consumption Expenditures) price index data from the US this week. USDINR spot price is expected to trade in a range of 89.60 to 90.20,” said Anuj Choudhary, research analyst, Mirae Asset ShareKhan.

Dilip Parmar, research analyst, HDFC Securities, said: “Marking its fifth straight session of losses, the Indian currency continued its downward trajectory as investors shifted toward risk aversion.

“The persistent decline was further intensified by typical month-end demand from importers and corporates scrambling for the greenback in thin liquidity market. The current trend reflects a broader cautiousness as market participants recalibrate their portfolios for the new year,” he said, adding that in the near term, the USDINR to find support around 88.95, while recovery faces a hurdle at the 90.30 level.