Rupee falls 17 paise to 83.23 against U.S. dollar

Rupee depreciates 17 paise to 83.23 vs US dollar; RBI intervention to maintain stable trajectory until Oct 6. Weak domestic equities, FII outflows & strong dollar weigh on investor sentiments. RBI Governor-led MPC to meet Oct 4-6, FX reserves down $2.335 bn to $590.702 bn.

The rupee depreciated 17 paise to 83.23 against the US dollar in early trade on Tuesday, as a strong dollar and sustained foreign fund outflows weighed on investor sentiments.

Forex traders said a weak trend in domestic equities also dented investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 83.21, then touched 83.23, registering a decline of 17 paise over its last close.

On Friday, the rupee appreciated 13 paise to settle at 83.06 against the US dollar.

On Monday, the domestic forex market was closed on account of Mahatma Gandhi Jayanti.

According to CR Forex Advisors MD-Amit Pabari, in response to potential risks, particularly the rupee's vulnerability against the dollar, the RBI has engaged in strategic selling of dollars through public sector banks in recent trading sessions.

The intervention is expected to maintain a relatively stable trajectory for the rupee until the upcoming monetary policy decision on October 6, Pabari added.