Reportedly the rupee depreciated by 14 paise to close at 71.02 against the US dollar on Monday as profit booking in domestic equities and unabated foreign fund outflows kept investors edgy. Meanwhile Forex traders said market sentiment remained fragile ahead of the US-China trade meeting. Besides, rising crude oil prices also weighed on the domestic unit.
Furthermore at the interbank foreign exchange market, the local currency opened on a weak note at 71.00 and fell further to a low of 71.09. It finally settled at 71.02, lower by 14 paise against its previous close. V K Sharma, Head - PCG & Capital Market Strategy, HDFC securities "Indian rupee weakened along with other emerging Asian currencies against the US dollar as fresh doubts over US-China trade talks resurfaced after a report said that Beijing may be reluctant on agreeing to a broad deal".
Moreover Sharma further said "spot USDINR has been trading in the tight range with thin volume ahead of the holiday of "Dusshera". The forex market will remain closed on Tuesday on account of dussehra and the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.07% to 98.87. On the domestic market front, the 30-share BSE Sensex settled at 37,531.98 points, down by 141.33 points or 0.38% as 24 of its components posted losses.
