Mumbai, Dec 23 (PTI) In contrast to equities, the Indian rupee today fell by seven paise against the US dollar on buying by importers amid a firm American unit overseas that set a two-month peak against the yen.
Trapped in a narrow range, the strong rise in stock market could not stem the rupee's fall.
Forex dealers said, some dollar buying by importers and banks as well as short-coverings ahead of holidays weighed on the rupee.
The broadly firm greenback that was at a two-month high against the yen after better-than-expected US housing market data, raising hopes for a solid recovery in the US economy dragged down the rupee, they added.
This may also lead the Federal Reserve to raise interest rates sooner than later, sending dollar higher, said analysts.
Trading in a narrow zone, the rupee finished the day at 46.87/88 a dollar.
Source : PTI