- Tag results for rupee rate
Traders said the US dollar's strength against some currencies overseas and a lower opening in the domestic equity markets also weighed on the local unit.
Forex dealers said weakness in the dollar against some currencies overseas and a higher opening of domestic equity markets gave some support to the rupee.
The rupee had lost 26 paise to close at 73.83 Monday after crude prices rose amid intensifying geopolitical tensions.
A spurt in dollar demand from importers amid sustained foreign fund outflows also weighed on the rupee.
Forex dealers said besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows weighed on the domestic currency.
There was continued buying by domestic institutional investors (DIIs) as well as select purchases by retail investors, traders said.
A higher opening of domestic equity markets too aided the recovery in the domestic unit.
Investors remained concerned over sustained foreign capital outflows and rise in crude oil price to 84.48.
At the forex market, the local currency was trading 18 paise higher at 73.88 in early trade.
The dollar strengthened after China's central bank eased its domestic policy to support the economy.
Patel said that the rupee fall, in some respect, is moderate in comparison to several other emerging market peers.
The rupee is the worst performing emerging market currency having lost almost 14 per cent since January this year.
The economists gave a 60 per cent probability for RBI staying on hold, they said, adding that "one cannot rule out" a hike on currency weakness and higher oil prices.
Rupee has been punished for the country's widening trade gap and swept into the broader emerging market turmoil caused by rising U.S. interest rates and an escalating U.S.-China trade conflict.
Macroeconomic data announced during the week as well the news of the Prime Minister’s impending meeting on Saturday have been positive for the markets.