Rupee falls 1 paisa to 84 against dollar

Mumbai: The rupee pared its initial gains and settled 1 paisa lower at 84.00 against the US dollar on Monday on selling pressure from foreign funds and weak tone in the domestic markets.

Forex traders said elevated crude oil prices and escalating tensions between Israel and Iran weighed on the local unit, while all-time high forex reserves boosted investor sentiments.

At the interbank foreign exchange, the rupee opened at 83.96 against the US dollar and touched an intra-day high of 83.95 and a low of 83.99.

The domestic currency finally ended the day 1 paisa lower at 84.00.

On Friday, the rupee depreciated 3 paise to settle at 83.99 against the US dollar. Meanwhile, India’s forex reserves jumped $12.588 billion to a new all-time high of $704.885 billion for the week ended September 27, the RBI said on Friday.

Moreover, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.07 per cent to 102.59. FIIs were net sellers in the capital markets on Friday, offloading shares worth Rs 9,896.95 crore on a net basis in the cash segment, as per the exchange data.