In early trade on Monday, the rupee fell 5 paise to 83.43 against the US dollar due to the US currency’s strength abroad and the flight of foreign capital from domestic equities markets.
The Indian rupee was, however, supported at a lower level by favourable sentiment in the home equity markets and declining crude oil prices in the global markets, according to forex traders.
At 83.39 against the US dollar at the interbank foreign exchange, the domestic currency started the day weak and fell to 83.43, closing at a loss of 5 paise from its previous closing level.
The rupee fell 10 paise versus the US dollar to settle at 83.38 on Friday.
In the meantime, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, rose by 0.05 percent to 105.86.
Analysts ascribed the strengthening dollar to favourable global trends along with robust growth in the largest economy in the world, which rekindled expectations that the US Federal Reserve will cut interest rates.
The benchmark for global oil, Brent crude futures, fell 0.92 percent to USD 88.68 a barrel.
The 30-share BSE Sensex was up 271.80 points, or 0.37 percent, at 74,001.96 on the local equities market. At 22,492.40, the larger NSE Nifty increased by 72.45 points, or 0.32 percent.
According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 3,408.88 crore on Friday, making them net sellers in the capital markets.
