<p>The rupee depreciated by 34 paise to close at 81.25 (provisional) against the US dollar on Wednesday on disappointing trade data and foreign fund outflows.</p>.<p>Forex traders said a negative bias on risk aversion in global markets weighed on the local unit.</p>.<p>At the interbank foreign exchange market, the local unit opened at 81.41 and later witnessed an intraday high of 81.23 and a low of 81.58 during the session.</p>.<p>The domestic unit finally settled at 81.25 against the American currency, registering a fall of 34 paise over its last close.</p>.<p>On Tuesday, the rupee appreciated 37 paise to close at 80.91 against the US dollar.</p>.<p>"The Indian rupee depreciated on risk aversion in global markets and weak Asian currencies. Disappointing macroeconomic data from FII outflows also weighed on Rupee," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.</p>.<p>On the domestic macroeconomic front, India's exports entered negative territory after a gap of about two years, declining sharply by 16.65 per cent to $29.78 billion in October. Trade deficit widened to $26.91 billion, according to data released by the commerce ministry on Tuesday.</p>.<p>"We expect Rupee to trade with a negative bias on risk aversion in global markets and Dollar demand from importers. However, weak Dollar and decline in crude oil prices may prevent sharp fall in rupee," Choudhary said.</p>.<p>Geopolitical tensions eased somewhat after investigations revealed that the missile which hit Poland was fired from Ukraine and not Russia.</p>.<p>"Investors may also remain cautious ahead of retail sales and industrial production data from the US. USDINR spot price is expected to trade in a range of Rs 80.50 to Rs 82.50," Choudhary added.</p>.<p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.28 per cent to 106.10.</p>.<p>Global oil benchmark Brent crude futures advanced 0.47 per cent to $94.30 per barrel.</p>.<p>On the domestic equity market front, the 30-share BSE Sensex rose 107.73 points or 0.28 per cent to end at 61,980.72, while the broader NSE Nifty advanced 6.25 points or 0.03 per cent to 18,409.65.</p>.<p>Foreign institutional investors (FIIs) were net sellers in capital markets as they offloaded shares worth Rs 221.32 crore on Tuesday, according to exchange data. </p>
<p>The rupee depreciated by 34 paise to close at 81.25 (provisional) against the US dollar on Wednesday on disappointing trade data and foreign fund outflows.</p>.<p>Forex traders said a negative bias on risk aversion in global markets weighed on the local unit.</p>.<p>At the interbank foreign exchange market, the local unit opened at 81.41 and later witnessed an intraday high of 81.23 and a low of 81.58 during the session.</p>.<p>The domestic unit finally settled at 81.25 against the American currency, registering a fall of 34 paise over its last close.</p>.<p>On Tuesday, the rupee appreciated 37 paise to close at 80.91 against the US dollar.</p>.<p>"The Indian rupee depreciated on risk aversion in global markets and weak Asian currencies. Disappointing macroeconomic data from FII outflows also weighed on Rupee," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.</p>.<p>On the domestic macroeconomic front, India's exports entered negative territory after a gap of about two years, declining sharply by 16.65 per cent to $29.78 billion in October. Trade deficit widened to $26.91 billion, according to data released by the commerce ministry on Tuesday.</p>.<p>"We expect Rupee to trade with a negative bias on risk aversion in global markets and Dollar demand from importers. However, weak Dollar and decline in crude oil prices may prevent sharp fall in rupee," Choudhary said.</p>.<p>Geopolitical tensions eased somewhat after investigations revealed that the missile which hit Poland was fired from Ukraine and not Russia.</p>.<p>"Investors may also remain cautious ahead of retail sales and industrial production data from the US. USDINR spot price is expected to trade in a range of Rs 80.50 to Rs 82.50," Choudhary added.</p>.<p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.28 per cent to 106.10.</p>.<p>Global oil benchmark Brent crude futures advanced 0.47 per cent to $94.30 per barrel.</p>.<p>On the domestic equity market front, the 30-share BSE Sensex rose 107.73 points or 0.28 per cent to end at 61,980.72, while the broader NSE Nifty advanced 6.25 points or 0.03 per cent to 18,409.65.</p>.<p>Foreign institutional investors (FIIs) were net sellers in capital markets as they offloaded shares worth Rs 221.32 crore on Tuesday, according to exchange data. </p>