The rupee declined by 21 paise to 75.94 against the US dollar on Wednesday as surging crude oil prices and fuel rate hikes by the oil marketing companies fanned fears of inflation and interest rate hikes.
However, a strong rally in the domestic equities capped the rupee’s loss, forex traders said.
Development in the Russia-Ukraine conflict and the movement of crude oil prices remain the main focus for forex markets, they added.
At the interbank foreign exchange market, the rupee opened strong at 75.65 against the American dollar but soon entered the negative territory as investors dumped riskier assets. During the session, it swung between a high of 75.62 and a low of 75.97.
