Indian rupee closes lower amid dollar demand

MUMBAI: The Indian rupee ended weaker on Tuesday, in line with broad weakness in Asian currencies, and pressured by US dollar demand from oil companies and foreign banks.

The rupee ended at 83.3175, lower by 0.1% compared with its close at 83.2375 in the previous session.

The dollar index rose to 101.6 while Asian currencies retreated, with the Korean won leading losses down by nearly 1%.

While the rupee’s initial fall was prompted by weakness in its Asian peers, dollar demand from oil companies and foreign banks kept up the pressure on the local unit, a foreign exchange trader at a state-run bank said.

Benchmark Indian equity indices, the BSE Sensex and Nifty 50, ended in the red as selling pressure emerged after the indices touched record high levels on Monday.