MUMBAI: The rupee depreciated by 8 paise to close at 88.27 against the US dollar on Tuesday on weak domestic stock markets and foreign fund outflows.

Forex traders said a weak US dollar and softening of crude oil prices cushioned the downside.

Investors are also keeping a watch on the Federal Reserve’s policy decision on Wednesday for further cues.

At the interbank foreign exchange market, the rupee opened at 88.34, and later traded in a range of 88.23 to 88.40 during the day. The local unit finally settled at 88.27 (provisional) against the greenback, registering a fall of 8 paise from its previous close.

On Monday, the rupee plunged 36 paise to close at 88.19 against the US dollar.

"We expect the rupee to trade with a slight negative bias on weak domestic equities and month-end dol

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