Rupee declines by 9 paise to end at 72.89 on strong dollar

Mumbai: The rupee depreciated by 9 paise to close at 72.89 against the US currency on Tuesday, tracking a strong dollar overseas and subdued sentiment in the domestic equities.

However, a fall in crude oil prices restricted the rupee's decline, forex traders said.

"Rupee consolidated in a narrow range for the second successive session following low volatility in domestic equities as well. This week, more global factors are likely to impact the currency as no major economic data is expected to be released on the domestic front," Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services, said.

"The greenback is likely to be impacted by the inflation number that will be released from the US. Today, volatility for the dollar could remain low following lack of cues from the US. For the next couple of sessions we expect the USDINR (Spot) to trade sideways and quote in the range of 72.70 and 73.20," Somaiyaa said.

At the interbank forex market, the local unit opened slightly up at 72.78 against the greenback and witnessed an intra-day high of 72.76 and a low of 72.90. It finally ended at 72.89 against the American currency, a decline of 9 paise over its previous close. On Monday, the rupee had settled at 72.80 against the US dollar.

On the domestic equity market front, the BSE Sensex ended 52.94 points or 0.10 per cent lower at 52,275.57, while the broader NSE Nifty slipped 11.55 points or 0.07 per cent to 15,740.10. x