Rupee Falls 45 Paise To Close At 83.59 Against US Dollar

The rupee declined 45 paise to close at 83.59 (provisional) against the US dollar on Tuesday as the ruling BJP is unlikely to muster an absolute majority in the Lok Sabha elections, according to a PTI report.

Besides, a massive sell-off in domestic equities and a strong greenback against major currencies overseas added to the gloom, forex traders said. At the interbank foreign exchange market, the local unit opened weak at 83.25 and oscillated between a high of 83.23 and a low of 83.59 against the greenback during the session. The domestic currency finally closed at 83.59 (provisional) against the dollar, registering a fall of 45 paise from its previous close, added the PTI report.

Counting of votes on Tuesday indicated disappointing results for the BJP-led NDA in the Lok Sabha elections, which appears to be losing heavily in its strongholds of Uttar Pradesh, Haryana and Rajasthan although it is expected to form the government with about 290 seats.

Earlier, in morning trade rupee depreciated by 24 paise to Rs 83.38 against the US dollar. Rupee opened 10 paise lower at 83.24 per dollar on Tuesday as against Monday's close of 83.14 as counting of votes for Lok Sabha election results is underway amid tight security.

Earlier on June 3, rupee jumped to over two-month high closing level and settled with a gain of 28 paise at 83.14 (provisional) against the US dollar, tracking over 3% surge in domestic equity benchmarks after exit poll results predicted a firm comeback of the ruling BJP-led government for the third straight term, according to PTI report.

After the election results today, focus will shift to the Reserve Bank of India's (RBI) policy decision along with U.S. non-farm payrolls.