Rupee falls 8 paise to 85.70 against US dollar in early trade

MUMBAI: (Jul 3) The rupee depreciated 8 paise to 85.70 against the US dollar in early trade on Thursday amid renewed headwinds from global risk sentiment and persistent foreign fund outflows.

Forex traders said the rupee was trading in a narrow range largely due to RBI’s cautious strategy as any dip in USD-INR is likely to be met with dollar buying by the RBI, not only to manage maturities but also to rebuild its intervention cushion.

This persistent demand for dollars by the central bank is limiting the gains for the rupee, they said.