New Delhi, August 21 (HS): The Indian rupee ended weaker for a second consecutive session on Wednesday, sliding 18 paise to close provisionally at 87.26 against the US dollar. The fall was largely driven by firm crude oil prices and a stronger dollar index, both of which weighed on sentiment in the domestic currency market.

The rupee opened stronger at 87.03 per dollar in the interbank forex market, gaining 5 paise in early trade. At one point, it even rose 16 paise to touch an intraday high of 86.92. However, as dollar demand picked up sharply, the domestic unit quickly lost momentum and slipped as much as 35 paise from its high to touch 87.27. Eventually, it settled at 87.26, marking an 18-paise decline from the previous close of 87.08.

Traders said persistent dollar demand from importers and the rally in global crude prices not only dragged the rupee but also created a broadly negative tone across currencies.

The weakness was not limited to the greenback pairing. The Indian currency also slipped against other major currencies. Against the British pound, the rupee eased 4 paise to end at 117.60, while versus the euro, it fell sharply by 31 paise to 101.70.

Market participants noted that unless crude oil prices stabilize and the dollar index cools, volatility in the rupee could continue in the near term.

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Hindusthan Samachar / Jun Sarkar