Tags: Mumbai , Dollar , Rupee

Mumbai: Moving in sync with the erratic stock market, the rupee today closed lower by eight paise against the US currency due to some dollar buying by importers.

In fairly active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit closed at 46.81/82 a dollar, down by 8 paise over the previous close. It had opened steady at 46.72/73 a dollar.

Dealers said that dollar buying by importers weighed on the rupee, which moved in line with the stock markets during the day trade.

Expectations of increased capital outflows after unpredictable stock markets too put pressure on the rupee.

Dealers said that foreign funds seemed to have adopted cautious approach ahead of the forthcoming Budget, triggering a sell-off in the market.

The Indian benchmark Sensex, after gyrating in and out of positive terrain by about 409 points, closed slightly up by 19.

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