Mumbai: The rupee declined 28 paise to settle at 90.18 against the US dollar on Friday, weighed down by elevated global crude oil prices and persistent foreign fund outflows amid rising geopolitical tensions.
A stronger greenback and weak sentiment in domestic equity markets are putting further pressure on the local unit, according to forex traders.
At the interbank foreign exchange, the rupee opened higher at 89.88 but lost ground through the day to settle at 90.18 against the US dollar, down 28 paise from its previous close. During the day, the local currency traded between 89.88 and 90.25.
On Thursday, the rupee settled 3 paise lower at 89.90 against the US dollar.
“The rupee opened higher at 89.88, but as stock markets started to fall again and it fell to 90.25. The US Supreme Court’s decision on the tariffs was scheduled for Friday, and we await the decision, which could affect Indian stocks and the rupee on Monday,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.11 per cent higher at 99.04.
Brent crude, the global oil benchmark, was trading 0.56 per cent higher at $62.34 per barrel in futures trade.