Rupee tumbles 14 paise to close at 82.35 as US dollar strengthens

The rupee fell 14 paise to close at 82.35 (provisional) against the US dollar on Wednesday amid the strengthening of the American currency and sustained foreign fund outflows.

Besides, risk aversion sentiment among investors weighed on the local unit.

At the interbank foreign exchange market, the local currency opened at 82.32, then fell further to settle at 82.35 against the American currency, registering a decline of 14 paise over its previous close.

During the session, the local unit witnessed an intra-day high of 82.15 and a low of 82.37 against the greenback.

On Tuesday, the rupee rebounded from its all-time low to close 19 paise higher at 82.21 against the US dollar.

"In line with the dollar index, the rupee marked another steady day. So far this week, the rupee has been trading in a narrow range and closing near 82.32," said Dilip Parmar, Research Analyst, HDFC Securities.

Parmar said a rebound in the domestic equities and the central bank's intervention ahead of the crucial retail inflation release supported the rupee on Wednesday's trade.

In the near-term, spot USD/INR is expected to trade in the range of 82.10 to 82.80, Parmar noted.

Traders said investors remained cautious ahead of the release of key domestic macro data.

India's inflation, IIP and manufacturing output are due today, while the FOMC minutes are scheduled for late evening.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.01 per cent to 113.21.

Global oil benchmark Brent crude futures rose 0.39 per cent to USD 94.66 per barrel.

On the domestic equity market front, the 30-share BSE Sensex advanced 478.59 points or 0.84 per cent to end at 57,625.91, while the broader NSE Nifty rose 140.05 points or 0.82 per cent to 17,123.60.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth Rs 4,612.67 crore on Tuesday, according to exchange data.