The Indian rupee erased its morning gains on Tuesday and depreciated 48 paise against the dollar to trade at day’s low level of 69.01/$. The currency had gained 19 paise to record 68.34/$ as day’s high level
in the morning.
At 3:20PM, IST, the domestic unit was trading at 68.94/$.
The depreciation could be attributed to the increasing crude oil prices. Further, investors would have booked profit at higher level, which dragged rupee down.
The currency on Monday appreciated 53 paise at 68.53/$ as markets extended its rally to sixth consecutive trading session. The rally in the markets was driven by sustained foreign fund inflows and narrowing trade deficit. Further, narrowing trade deficit boosted investors bullish stance. As per government data, the trade deficit shrank to a 17-month low in February.
Meanwhile, equity benchmark indices were trading near day's high levels in the last trading hours on Tuesday. The Sensex gained 287 points at 38,381 levels, the Nifty climbed 79 points at 11,539 levels, struggling to touch key resistance level of 11,550.