Rupee falls 41 paise to close at 81.93 against U.S. dollar

The rupee witnessed an intra-day high of 81.58 and a low of 82.07 against the U.S. dollar

The rupee depreciated by 41 paise to close at 81.93 (provisional) against the U.S. dollar on Tuesday after the Economic Survey 2022-23 said the domestic unit may remain under pressure on account of plateauing of exports and subsequent widening of current account deficit.

Forex traders said significant foreign fund outflows and a muted trend in domestic equities also dented investor sentiment.

At the interbank foreign exchange, the domestic unit opened weak at 81.61 against the dollar, and lost further ground to fall below the 82 per U.S. dollar level. The rupee finally ended at 81.93, registering a decline of 41 paise over its last close.

During the session, the local unit witnessed an intra-day high of 81.58 and a low of 82.07 against the US dollar. In the previous session on Monday, the rupee settled at 81.52 against the American currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.15 per cent to 102.43.

Brent crude futures, the global oil benchmark, declined 1.18% to $83.90 per barrel.

Forex traders said investors are bracing for interest rate decisions from the Federal Reserve, and the Union Budget for 2023-24, both scheduled to be announced on Wednesday.