<p>Mumbai: The rupee depreciated 21 paise to close at 85.63 (provisional) against the US dollar on Tuesday, on weak domestic markets and a bounce back in US treasury yields.</p>.<p>Forex traders said the recent surge in the US 10-year yield reflects mounting concerns over fiscal and monetary policies, driving borrowing costs higher.</p>.<p>Foreign fund outflows and positive crude oil prices also weighed on the rupee. However, the weak US dollar index cushioned the downside, they said.</p>.<p>At the interbank foreign exchange, the domestic unit opened at 85.47 and moved between an intra-day high of 85.39 and a low of 85.65 against the greenback. The unit ended the session lower at 85.63 (provisional), registering a fall of 21 paise over its previous closing level.</p>.<p>On Monday, the rupee appreciated 15 paise to settle at 85.42 against the US dollar.</p>.<p>"We expect the rupee to trade with a negative bias amid FII outflows and weak domestic markets. However, a declining US dollar index may support the rupee at lower levels," Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan said, adding that USD-INR spot price is expected to trade in a range of 85.30 to 85.90.</p>.<p>The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.19 per cent at 100.23.</p>.<p>Brent crude, the global oil benchmark, fell 0.14 per cent to $65.45 per barrel in futures trade.</p>.<p>In the domestic equity market, the 30-share BSE Sensex declined 872.98 points, or 1.06 per cent, to close at 81,186.44, while the Nifty fell 261.55 points, or 1.05 per cent, to 24,683.90.</p>.<p>Foreign institutional investors (FIIs) offloaded equities worth Rs 525.95 crore on a net basis on Monday, according to exchange data. </p>
<p>Mumbai: The rupee depreciated 21 paise to close at 85.63 (provisional) against the US dollar on Tuesday, on weak domestic markets and a bounce back in US treasury yields.</p>.<p>Forex traders said the recent surge in the US 10-year yield reflects mounting concerns over fiscal and monetary policies, driving borrowing costs higher.</p>.<p>Foreign fund outflows and positive crude oil prices also weighed on the rupee. However, the weak US dollar index cushioned the downside, they said.</p>.<p>At the interbank foreign exchange, the domestic unit opened at 85.47 and moved between an intra-day high of 85.39 and a low of 85.65 against the greenback. The unit ended the session lower at 85.63 (provisional), registering a fall of 21 paise over its previous closing level.</p>.<p>On Monday, the rupee appreciated 15 paise to settle at 85.42 against the US dollar.</p>.<p>"We expect the rupee to trade with a negative bias amid FII outflows and weak domestic markets. However, a declining US dollar index may support the rupee at lower levels," Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan said, adding that USD-INR spot price is expected to trade in a range of 85.30 to 85.90.</p>.<p>The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.19 per cent at 100.23.</p>.<p>Brent crude, the global oil benchmark, fell 0.14 per cent to $65.45 per barrel in futures trade.</p>.<p>In the domestic equity market, the 30-share BSE Sensex declined 872.98 points, or 1.06 per cent, to close at 81,186.44, while the Nifty fell 261.55 points, or 1.05 per cent, to 24,683.90.</p>.<p>Foreign institutional investors (FIIs) offloaded equities worth Rs 525.95 crore on a net basis on Monday, according to exchange data. </p>