Forex traders said the rupee is trading lower on strong dollar and foreign fund outflows over the past few days.
Updated On – 12:49 PM, Wed – 2 August 23
Mumbai: The rupee depreciated 19 paise to 82.41 against the US dollar in early trade on Wednesday as a negative trend in domestic equities and firm crude oil prices weighed on investor sentiments.
Forex traders said the rupee is trading lower on strong dollar and foreign fund outflows over the past few days.
At the interbank foreign exchange, the domestic unit opened at 82.38, then touched 82.41, registering a decline of 19 paise over its last close.
On Tuesday, the rupee had settled at 82.22 against the dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10 per cent to 102.19.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, the rupee is expected to be range bound after opening weaker as oil companies are buying dollars amid firm crude oil prices.
Brent crude futures, the global oil benchmark, rose 0.84 per cent to USD 85.62 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 354.29 points or 0.53 per cent lower at 66,105.02. The broader NSE Nifty declined 106.30 points or 0.54 per cent to 19,627.25.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 92.85 crore, according to exchange data.
