Rupee snaps six-day slide, settles at 89.98 vs dollar

MUMBAI: The rupee closed at 89.98 a day after breaching the 90 mark against the greenback. Dollar sales by foreign banks and likely inflows halted a six-session decline in the domestic currency.The rupee hit 90.42 intraday before closing higher. Wider trade deficits, weak investment flows and stalled US trade talks have slowed inflows and pushed the rupee to the bottom of the Asian currency pack. RBI is seen tolerating a weaker exchange rate as inflows remain subdued. Dollar sales from foreign banks and selling interest in the non-deliverable forwards market helped the rupee reverse losses. Currency traders expect RBI’s monetary policy decision on Friday to influence sentiment. Immediate pressure on the rupee is expected to continue, but progress in trade talks could support a reversal next year.