Mumbai: The rupee depreciated 30 paise to 85.40 against the US dollar on Tuesday, tracking a recovery in American currency index, negative domestic equity market and muted foreign fund inflow.
According to forex analysts, investors also moved cautiously awaiting domestic industrial and manufacturing production data for April as well as the first quarter GDP growth numbers to be released this week.
At the interbank foreign exchange, the domestic unit opened at 85.15 and moved between the high of 85.11 and the low of 85.45 against the greenback during intraday trade.
The unit settled at 85.40 against the dollar, registering a loss of 30 paise over its previous close.
The rupee closed 35 paise higher at 85.10 against the greenback on Monday, after gaining 50 paise in the preceding session on Friday.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee fell on weak domestic equities and positive US dollar index. Muted foreign inflows also weighed on the rupee.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.45 per cent at 99.31.