Mumbai, Aug 25: The rupee pared initial gains to settle 4 paise lower at 87.56 against the US dollar on Monday, tracking a strong American currency and a recovery in crude oil prices.
Forex traders said investors were cautious ahead of the implementation of the August 27 tariff deadline and the upcoming US economic data ahead of the Federal Reserve’s September 17 meeting.
At the interbank foreign exchange market, the rupee opened on a positive note at 87.38, then touched an early high of 87.34 and an intraday low of 87.61 against the US dollar.
The domestic unit settled for the day at 87.56, registering a decline of 4 paise over its previous close.
On Friday, the rupee fell 27 paise to close at 87.52 against the greenback.
Further, oil importers remain dollar buyers, putting pressure on the rupee.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.24 per cent to 97.95.
Recent dovish commentary from US Federal Reserve Chairman Jerome Powell, which has fuelled expectations of a potential rate cut as early as next month, supported the greenback.
Brent crude, the global oil benchmark, was trading 0.41 per cent higher at USD 68.01 per barrel in futures trade.
Meanwhile, Republican leader Nikki Haley has said that India should take President Donald Trump’s concerns over its procurement of Russian crude oil seriously and work with the White House to find a solution to the issue.
The Trump administration has been severely critical of India for its procurement of discounted crude oil from Russia. Interestingly, Washington has not been criticising China, the largest importer of Russian crude oil.
Defending its purchase of Russian crude oil, India has been maintaining that its energy procurement is driven by national interest and market dynamics. (PTI)
