Mumbai, June 2: The rupee depreciated 17 paise to close at 95.36 against the US dollar on Tuesday, as global crude oil prices jumped and the American currency remained firm amid massive safe-haven inflows.
Forex traders said significant foreign fund outflows also weighed on the investor sentiments.
At the interbank foreign exchange market, the rupee opened at 95.16 against the US dollar, then touched an intraday high of 95.03 and a low of 95.31.
At the end of Tuesday’s trading session, the rupee was quoted at 95.36, down 17 paise from its previous close. On Monday, the rupee depreciated 34 paise to close at 95.19 against the US dollar. “We expect the rupee to trade with a negative bias on renewed geopolitical tensions and a surge in crude oil prices. Strength in the dollar may also put pressure on the rupee. However, continued peace talks may prevent a sharp fall,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.
Investors may watch out for the Reserve Bank of India (RBI) monetary policy this week, Choudhary said, adding that the USDINR spot price is expected to trade in a range of 94.90 to 95.50.
The RBI Monetary Policy Committee meeting is scheduled for June 3-5. The six-member MPC, headed by RBI Governor Sanjay Malhotra, will announce its decision on June 5. (PTI)
