Rupee falls 1 paisa to 84.08 against dollar

Mumbai: The rupee on Tuesday settled just 1 paisa lower at 84.08 against the US dollar, tracking an intense selloff in domestic equity markets and unabated outflow of foreign funds.

The local unit was also weighed down by elevated crude oil prices as well as firm American currency amid rising US treasury yields, forex traders said.

At the interbank foreign exchange market, the domestic unit opened at 84.07 against the greenback and witnessed a restricted movement between 84.06 and 84.08 during the session.

The unit finally settled at 84.08 against the US dollar, a fall of just 1 paisa over its previous close.

On Monday, the rupee settled flat at 84.07 against the US dollar.

The Indian currency has been struggling to recover since October 11 when it closed at its lowest level of 84.10 against the dollar.

According to analysts, the rupee has been under pressure due to the continuous selling of Indian equities by FIIs in pursuit of better gains from the Chinese market.

Also, they said, a surge in the US treasury yields raised concerns about slower rate cuts by the Federal Reserve, steering investors towards a safer bet dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.07 per cent to 103.76.