Due to corporate hedging and dollar demand from maturing offshore accounts, the rupee declined on Friday. It dropped 14 paise from its previous level to close at 90.16 per dollar.
The pressure was increased by declining stocks. Although intermittent dollar sales close to the lows limited losses and maintained cautious attitude, elevated dollar demand weighed on the day.
"Weakness in domestic equity markets and ongoing selling by foreign investors put pressure on the rupee. The currency has been further impacted by the dollar index's volatility, which was fueled by important US economic data, according to Jateen Trivedi of LKP Securities.
