Rupee Declines 8 Paise To Close At 89.30 Against US Dollar

The rupee depreciated 8 paise to settle at 89.30 (provisional) against the US dollar on Thursday amid a firm greenback due to its higher demand from importers and banks.

The Indian currency, however, found support from foreign capital infusion into domestic stock markets and lower crude oil prices in the international market, forex experts said.

At the interbank foreign exchange market, the rupee opened at 89.19 and touched the intra-day low of 89.40 against the greenback. The unit closed the session at 89.30 (provisional) against the dollar, registering a loss of 8 paise from the previous closing level.

The rupee settled flat at 89.22 against the greenback on Wednesday.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was 0.11% higher at 99.63.

Analysts attributed the strength in the greenback to its increased demand from importers as well as banks for month-end trade payment settlements.

Brent crude, the global oil benchmark, fell 0.03% to USD 63.11 per barrel in futures trade.

On the domestic equity market front, the Sensex rose 110.87 points or 0.13% to settle at 85,720.38, while Nifty closed 10.25 points or 0.04% higher at 26,215.55.

Foreign institutional investors purchased equities worth ₹4,778.03 crore on a net basis on Wednesday, according to exchange data.