Mumbai: The rupee depreciated 13 paise to close at 87.69 against the US dollar on Tuesday, tracking weak domestic markets after the US issued a draft notice on plans to implement an additional 25 per cent tariff on Indian products.
Forex traders said the rupee lost momentum as worries over the looming 25 per cent additional US tariff on Indian goods, set to take effect from August 27, drove strong dollar demand from importers.
At the interbank foreign exchange market, the rupee opened at 87.74, then touched an early high of 87.63 and an intraday low of 87.80 against the US dollar.
The domestic unit settled at 87.69, registering a decline of 13 paise over its previous close.
However, softening of crude oil prices after gains over the past four sessions cushioned the rupee’s slide.
Brent crude, the global oil benchmark, was trading 1.48 per cent lower at $67.78 per barrel in futures trade.
Meanwhile, the US dollar fell early Tuesday after Trump fired US Federal Reserve Governor Lisa Cook. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05 per cent to 98.37.