The rupee depreciated by 35 paise to close at 81.26 against the US dollar on Wednesday on disappointing trade data and foreign fund outflows.
Forex traders said a negative bias on risk aversion in global markets weighed on the local unit. At the interbank foreign exchange market, the local unit opened at 81.41 and later witnessed an intraday high of 81.23 and a low of 81.58 during the session.
The domestic unit finally settled at 81.26 against the American currency, registering a fall of 35 paise over its last close.
On Tuesday, the rupee appreciated 37 paise to close at 80.91 against the US dollar.
“The Indian rupee depreciated on risk aversion in global markets and weak Asian currencies. Disappointing macroeconomic data from FII outflows also weighed on Rupee,” said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.
“The Indian Rupee weakened on Wednesday on dollar demand from importers and weakness in Asian currencies. A decline in USD/INR forward premiums also made it attractive for importers to hedge, leading to more dollar outflows,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
