The rupee ended 2 paise lower at record closing low of 83.36 against the US dollar on Tuesday amid persistent dollar demand by importers.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% lower at 103.37 and was hovering close to its weakest level in nearly four months.
On Monday, the rupee ended 7 paise lower at 83.34 a dollar. The local unit hit a lifetime low of 83.42 a dollar on November 10.
Rupee has been unable to take advantage of broad weakness in the dollar and drop in US treasury yields.
The dollar has retreated on rising bets that the US Federal Reserve may start easing policy rates from next year.
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“The rupee is expected to remain in a lackluster range in the near-term but December could spark some volatility due to year-end dollar demand,” Dilip Parmar, a foreign exchange research analyst at HDFC Securities said.
Investors now await the minutes of the Fed’s October meeting, due later on Tuesday.
Brent crude futures, the global oil benchmark, was trading 0.63% lower at $81.80 per barrel.
On the domestic front, the benchmark equity indices ended with decent gains on Tuesday, snapping a two-day losing streak.
The BSE Sensex closed 275.62 points, or 0.42%, higher at 65,930.77, while the NSE Nifty 50 gained 89.40 points, or 0.45%, to settle at 19,783.40.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹645.72 crore.
(With input from Reuters)
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