Rupee falls 3 paise to settle at 82.92 against U.S. dollar

Rupee falls to 82.92 against dollar on bearish equity markets, foreign fund outflow, and month-end demand.

The rupee declined by 3 paise to settle at 82.92 (provisional) against the U.S. dollar on February 28, tracking bearish equity markets and foreign fund outflow amid increased month-end demand for the American currency.

Forex analysts said that softening crude oil prices provided a cushion to the Indian currency which was weighed down by a stronger dollar.

Also, market participants were cautious ahead of the domestic GDP data to be released on February 29 and the U.S. GDP numbers expected on February 28, they said.

At the interbank foreign exchange market, the local unit opened at 82.90 and touched the intra-day low of 82.95 against the greenback. The local unit finally settled at 82.92 (provisional) against the dollar, registering a loss of 3 paise from its previous close.

On February 27, the rupee settled 1 paisa lower at 82.89 against the U.S. dollar.

Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the Indian rupee fell on weak domestic markets and a strong U.S. dollar, however, softening crude oil prices cushioned the downside.

"We expect rupee to trade with a slight negative bias on weak global equities and month-end dollar demand from importers and OMCs (oil marketing companies).