Mumbai: The rupee settled 3 paise lower at 89.90 against the US dollar on Thursday, amid sustained outflow of foreign funds and a stronger greenback.
The apprehension of any further tariffs by the US and weak sentiments at the domestic equity markets further pressured the local unit, foreign exchange traders said.
At the interbank foreign exchange, the rupee opened at 89.96 and traded in the range of 89.73 to 90.13. It eventually settled at 89.90, down 3 paise from its previous close.
“India faces big trouble on its exports if the US increases tariffs by even 10 bps, as sentimentally it changes from ‘the deal in pipeline’ to ‘back to square one’. RBI shorts in the markets will keep the dollar buying sentiment,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
The rupee is expected in the range of 89.80 to 90.30 on Friday, he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent higher at 98.70.