Mumbai, Jan. 14 -- The rupee pared initial gains and settled for the day 11 paise lower at 90.34 against the US dollar on Wednesday, as the likely central bank intervention was negated by a strong dollar, foreign outflows from capital markets, and elevated crude oil prices.
Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and geopolitical tensions, however, rising odds of a rate cut amid softening inflation and any intervention by the central bank may support the rupee at lower levels.
At the interbank foreign exchange, the rupee opened at 90.26 and touched the intra-day low of 90.38 and a high of 89.94 against the dollar.
Published by HT Digital Content Services with permission from Millennium Post.