New Delhi, September 18 (HS): The Indian rupee closed weaker against the US dollar on Thursday, weighed down by firming dollar index, weak global cues, and continued selling by foreign investors in equities. Increased demand for the greenback in the currency market also pressured the domestic unit.

At the interbank foreign exchange market, the rupee ended at a provisional 88.14 per US dollar, down 32 paise from its previous close of 87.82.

The local currency opened on a soft note at 87.97 per dollar, 15 paise lower than yesterday’s close. It briefly recovered to 87.94 in early trade but soon slipped further as negative sentiment dominated the market. During the session, the rupee touched an intra-day low of 88.16 before settling at 88.14.

The weakness was not limited to the dollar alone. The rupee also registered losses against other major global currencies. It fell to 120.27 per British pound, down 42.97 paise, and dropped to 104.33 against the euro, a decline of 31.88 paise.

Currency market participants attributed the pressure on the rupee to rising dollar demand, global uncertainties, and persistent outflows by foreign portfolio investors from Indian equities.

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Hindusthan Samachar / Jun Sarkar