Mumbai: The rupee depreciated 21 paise to close at 86.61 against the US dollar on Thursday, dragged down by a strong American currency overseas, elevated crude oil prices and foreign fund outflows. However, positive domestic equity markets provided some cushion at the lower level, forex traders said.
At the interbank foreign exchange, the rupee opened at 86.42 and touched the intraday high of 86.37 before ending the session at 86.61 against the greenback, 21 paise lower from the previous close.
The local unit settled with a gain of 13 paise at 86.40 against the dollar on Wednesday, a day after rebounding 17 paise from its lowest-ever level.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee declined due to increased demand for dollars by importers.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent higher at 108.97.
Brent crude, the global oil benchmark, fell 0.12 per cent but stayed elevated at $81.93 per barrel in futures trade. FIIs offloaded equities worth Rs 4,533.49 crore on Wednesday. PTI