MUMBAI: The rupee depreciated for the fourth straight day, shedding 8 paise to settle at 96.33 (provisional) against the US dollar amid volatility in global crude oil prices and a stronger greenback as the West Asia crisis intensified.
FII outflows put further pressure on the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 96.28 against the greenback and traded in a range of 96.22-96.37 during the session. It settled at 96.33 (provisional), down 8 paise from its previous close.
The local unit had on Wednesday settled 9 paise lower at 96.25 against the US dollar.
Crude oil prices remain elevated amid back-and-forth strikes by the US and Iran across West Asia. Renewed threats to the Strait of Hormuz have shredded the interim deal to end the Iran war and could tip the region back into all-out war.
"We expect the rupee to trade with a negative bias on geopolitical tensions between the US and Iran as well as elevated crude oil prices. However, Donald Trump said Iran wants to make a deal with the US. This may lead to some improvement in global market sentiments. Any intervention by the RBI may also support the rupee at lower levels," Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.
"Traders may take cues from retail sales and weekly unemployment claims data from the US. USD-INR spot price is expected to trade in a range of Rs 96.10-96.60," he said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading marginally up by 0.02 per cent at 100.50.
Brent crude, the global oil benchmark, remained volatile in international markets and was trading 0.39 per cent lower at USD 84.62 per barrel in futures trade.
Stock markets closed on a flat note on Thursday with Sensex edging up a mere 1.44 points to 77,186.87, while the Nifty slipped 5.75 points to 24,072.75.
Foreign Institutional Investors on Wednesday offloaded equities worth Rs 735.83 crore in the domestic equity market, according to exchange data.
