Rupee falls 6 paise to close at 90.29 against US dollar

Mumbai : The rupee pared initial gains and settled for the day 6 paise lower at 90.29 (provisional) against the US dollar on Wednesday, as the likely central bank intervention was negated by a strong dollar, foreign outflows from capital markets, and elevated crude oil prices. 

Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and geopolitical tensions, however, rising odds of a rate cut amid softening inflation and any intervention by the central bank may support the rupee at lower levels. 

At the interbank foreign exchange, the rupee opened at 90.26 and touched the intra-day low of 90.30 and a high of 89.94 against the greenback. 

The currency finally ended the session at 90.29 (provisional) against the dollar, down 6 paise from its previous close. 

On Tuesday, the rupee declined 6 paise to close at 90.23 against the US dollar.