Mumbai: The rupee snapped its three-day rally and settled with a loss of 6 paise at 87.12 against the US dollar on Thursday amid uncertainty over trade tariffs and persistent foreign fund outflows.
According to forex traders, investors moved cautiously awaiting the weekly unemployment claims data from the US and the monetary policy announcement by the European Central Bank.
While a positive equity market, weakness of the American currency in the overseas market and easing crude oil prices contained the losses for the local unit.
At the interbank foreign exchange, the rupee opened stronger at 86.96 and touched the high of 86.88 against the greenback during the day.
The unit later turned volatile and hit the day’s low of 87.16 before ending the session at 87.12 against the dollar, 6 paise lower from its previous closing level.
On Wednesday, the rupee settled 13 paise higher at 87.06 against the US dollar, registering the third straight day of gain. In the preceding two sessions, the unit had gained 18 paise.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.15 per cent at 104.12.
FIIs offloaded equities worth Rs 2,895.04 crore on net basis on Wednesday, according to exchange
data.