Rupee falls 16 paise to 85.58 against dollar

Mumbai: The rupee depreciated 16 paise to close at 85.58 against the US dollar on Tuesday, on weak domestic markets and a bounce back in US treasury yields.

Forex traders said the recent surge in the US 10-year yield reflects mounting concerns over fiscal and monetary policies, driving borrowing costs higher.

Foreign fund outflows and positive crude oil prices also weighed on the rupee. However, the weak US dollar index cushioned the downside, they said.

At the interbank foreign exchange, the domestic unit opened at 85.47 and moved between an intra-day high of 85.39 and a low of 85.65 against the greenback.

The unit ended the session lower at 85.58, registering a fall of 16 paise over its previous closing level.

On Monday, the rupee appreciated 15 paise to settle at 85.42 against the US dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.19 per cent at 100.23.