The rupee fell by 6 paise to close at 90.29 against the US dollar

The rupee pared initial gains to end day 6 lower at 90.29 (provisional) against the US dollar on Wednesday after likely central bank intervention was offset by a strong dollar, foreign outflows from capital markets and higher crude oil prices.Forex traders said the rupee is likely to trade with a negative impact on risk aversion in global markets and geopolitical tensions. However, increasing chances of a rate cut amid declining inflation and any central bank intervention could support the rupee at lower levels.

At the interbank forex market, the rupee opened at 90.26 and touched an intraday low of 90.30 and a high of 89.94 against the dollar. The currency eventually ended the session at 90.29 (provisional) against the dollar, down 6 paise from the previous close.On Tuesday, the rupee fell 6 paise to close at 90.23 against the US dollar.

“The Indian rupee rose in early trade on likely central bank intervention. However, a strong dollar, FII outflows and a late decline in domestic markets ended sharp gains,” said Anuj Choudhary, research analyst at Mirae Asset ShareKhan.

Choudhary further added that “we expect the rupee to trade with a negative bias towards risk aversion in global markets and geopolitical tensions”.

Traders are now focusing on the US Supreme Court’s ruling later today on the legality of the Liberation Day tariffs. The spot price of USDINR is expected to trade within a range of 89.95 to 90.50, he said. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.02 percent lower at 99.11.

Brent crude, the global oil benchmark, was 1.04 percent lower at USD 64.81 per barrel in futures trading.

In the domestic equity market, the Sensex fell 244.98 points to settle at 83,382.71, while the Nifty fell 66.70 points to 25,665.60.

Foreign institutional investors offloaded shares worth Rs 1,499.81 crore on Tuesday, according to stock market data.