The rupee took a hit of 30 paise and fell below the 83 mark against the dollar on Tuesday due to the global strength of the greenback and foreign fund outflows.
At the inter-bank forex markets, the domestic unit ended at 83.04 to the American currency compared with the last close of 82.74.
Forex circles pointed out that weaker Asian currencies on account of tepid Chinese economic data contributed to the rupee’s fall against the dollar.
The latter’s strength was reflected in the Dollar Index (DXY-which gauges the greenback’s strength against a basket of six currencies) which opened firm at 104.13 and rose to the day’s high of 104.85.
US treasury yields also leaned northward with the benchmark 10-year opening at nearly 4.21 per cent against the last close of 4.17 per cent.
Meanwhile, Brent crude futures, the global oil benchmark was trading higher at $90.20 per barrel against the previous close of $89 after Saudi Arabia extended their supply cuts to end of this calendar year.
“USDINR spot closed 29 paise at 83.04 due to strength in the US Dollar Index and weakness in the Chinese currency. Uptick in the US bond yields and news of fresh credit stress in China drove USDINR higher. We expect a range of 82.60 and 83.25 on spot,’’ Anindya Banerjee, VP at Kotak Securities said.
