Rupee falls 7 paise to close at 81.33 against US dollar on firm crude oil prices

Mumbai : The rupee pared its initial gains to settle down by 7 paise at 81.33 against the US dollar on Friday as the support from weak dollar was negated by weak domestic markets and gains in crude oil prices.
Forex traders said foreign fund outflows also weighed on investor sentiments.
At the interbank foreign exchange market, the local unit opened at 81.11, but pared the gains and ended at 81.33, down 7 paise over its previous close.
During the day, the local unit witnessed an intraday high of 81.08 and a low of 81.35. On Thursday, the rupee appreciated by 4 paise to close at 81.26 against the US dollar.
“Weak US Dollar index supported the rupee. However, weak domestic markets, a surge in crude oil and FII outflows capped sharp gains,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
The US Dollar declined as US ISM manufacturing PMI slipped into contraction and positive riskier currencies such as Euro and Pound. Euro surged as the German trade surplus topped street estimates.