Rupee settles 8 paise lower at 74.83 against US dollar

Mumbai: The rupee slipped 8 paise and settled at 74.83 against the US dollar on Friday as weak domestic equities and escalating tensions between the US and China weighed on investor sentiment.

The rupee opened on a weak note at 74.94 at the interbank forex market, and finally closed at 74.83 against the US dollar, down 8 paise over its previous close of 74.75 against the greenback.

During the session, the domestic unit touched an intra-day high of 74.80 and a low of 74.98 against the US dollar.

Forex traders said concerns over growing tensions between the US and China dragged down the local unit.

China on Friday ordered the US to close down its consulate in Chengdu in retaliation to Washington's decision to shut the Chinese mission in Houston, further straining the already tense bilateral ties.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 94.72.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 61.63 points lower at 38,078.84 and broader NSE Nifty fell 49.80 points to 11,165.65.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,740.50 crore on Thursday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.28 per cent to USD 43.43 per barrel.

(PTI)