Mumbai: The rupee declined to over four-month low level and closed 21 paise weaker at 86.91 against the US dollar on Tuesday, weighed down by a jump in the American currency index and a surge in crude oil prices.
Forex traders said month-end dollar demand from Oil Marketing Companies (OMCs) and importers further pressurised the rupee.
Moreover, investors remained on the sidelines ahead of the US Federal Reserve and Bank of Japan’s monetary policy decision this week.
At the interbank foreign exchange, the domestic unit opened at 86.76 and touched an intra-day low of 86.92 against the greenback, surpassing the closing level of March 17 when the unit had ended at 86.81 versus dollar.
At the end of Tuesday’s trading session, the local unit settled at 86.91, down 21 paise over its previous closing price.
On Monday, the rupee had settled at 86.70 against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose marginally by 0.13 per cent to 98.75.