Rupee settles 6 paise down at 71.34 against US dollar

The rupee pared early gains to settle 6 paise down at 71.34 (provisional) against the US dollar on Wednesday ahead of the release of key domestic macroeconomic data.

Forex traders said rising crude prices, foreign fund outflows and strengthening of the American currency weighed on the domestic unit.

Investors were also awaiting inflation and factory output data, scheduled for release later in the day, they added.

At the interbank foreign exchange market, the rupee opened at 71.24 per dollar. During the day, it swung between a high of 71.21 and a low of 71.40. The domestic unit finally settled at 71.34, down 6 paise over its previous close.

The rupee had settled at 71.28 against the American currency on Tuesday.

"Rupee continued to consolidate in a narrow range for the fourth successive session ahead of inflation and industrial production number that will be released today. Weaker-than-expected economic number could continue to keep the currency weighed down," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.