Rupee falls 26 paise to 86.57 against dollar

Mumbai: The rupee depreciated 26 paise to close at 86.57 against the US dollar on Tuesday, as global risk sentiments were dampened amid tariff threats by the US President Donald Trump.

Forex traders said the rupee continued to face pressure due to sustained foreign fund outflows and the strength of the American currency in the overseas market amid unabated dollar demand from oil importers and weak risk appetite.

At the interbank foreign exchange, the rupee opened on a weak note at 86.53, and during the day touched a high of 86.50 and a low of 86.57 against the US dollar.

The local unit settled for the day at 86.57, registering a fall of 26 paise over its previous close.

However, overall weakness in crude oil prices and central bank intervention may support the rupee. Investors may remain cautious ahead of the FOMC (Federal Open Market Committee) meeting outcome this week.

The Reserve Bank of India’s announcement of the open market operations (OMO) may also support the rupee at lower levels.

The RBI on Monday said it will purchase government securities worth Rs 60,000 crore in three tranches and announced several other steps to inject liquidity into the banking system.