Mumbai: The rupee pared initial gains to settle 6 paise lower at 88.15 against the US dollar on Tuesday, tracking persistent foreign portfolio outflows and global trade tensions.
Forex traders said the rupee remained under pressure on worries over US tariffs on India and global trade uncertainties. Moreover, sustained foreign fund outflows also dented investor sentiments.
At the interbank foreign exchange, the rupee opened at 87.98 against the US dollar and touched an intraday low level of 88.19 before ending the session at 88.15, down 6 paise from its previous close.
On Friday, the rupee touched the lowest-ever intraday level of 88.38 but pared all losses before ending 3 paise higher at Rs 88.09 against the US dollar.
The unit had recorded its all-time low closing level of 88.15 against the dollar on September 2.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.17 per cent to 97.29.
Finance Minister Nirmala Sitharaman has said that the government is keeping a ‘good watch’ on exchange rates, stressing that besides the rupee, several other currencies have depreciated against the US dollar. “The rupee slide is largely against the dollar, not against any other currencies. That’s also because of the way globally, the dollar has strengthened,” she said.