Rupee falls 34 paise to close at 81.25 against US dollar

The domestic unit finally settled at 81.25 against the American currency, registering a fall of 34 paise over its last close

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.

Forex traders said a negative bias on risk aversion in global markets weighed on the local unit.

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.

The domestic unit finally settled at 81.25 against the American currency, registering a fall of 34 paise over its last close.

On Tuesday, the rupee appreciated 37 paise to close at 80.91 against the US dollar.

"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.

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.