Mumbai, February 24 The rupee traded in a narrow range on Tuesday and closed 6 paise lower at 90.95 against the US dollar amid a firm dollar and higher crude oil prices.
A sharp fall in domestic equity markets and uncertainties over the India-US trade deal further put pressure on the local currency, forex traders said.
At the interbank foreign exchange, the rupee opened at 90.91 and traded in a narrow range of 90.91-90.97 due to possible intervention by the Reserve Bank of India (RBI). It closed the session at 90.95, down 6 paise from its previous close.
The rupee gained 5 paise to close at 90.89 against the US dollar on Monday.
"The rupee declined due to weak domestic markets and a surge in crude oil prices, along with uncertainty over tariffs after US President Donald Trump threatened to impose higher duties on countries that did not honor the trade deal despite the Supreme Court ruling," said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.
However, the RBI may have sold dollars to prevent the rupee from falling below the psychological barrier of 91 levels, he added, noting that the rupee spot price is expected to trade in a range of Rs 90.75 to Rs 91.20 on Wednesday.
Meanwhile, the dollar index, which gauges the strength of the dollar against a basket of six currencies, was trading 0.16 per cent higher at 97.86.
Brent crude, the global oil benchmark, rose 0.27 per cent to USD 71.68 per barrel in futures trade.
On the domestic equity market front, the Sensex tumbled 1,068.74 points to close at 82,225.92, while the Nifty fell 288.35 points to 25,424.65.
On Tuesday, foreign institutional investors offloaded equities worth Rs 102.53 crore, according to exchange data.
