The rupee opened at 83.51 rupees against the dollar.
Mumbai:
The rupee weakened by 9 paise to 83.53 rupees against the US dollar in early trading on Tuesday, weighed down by the strong US currency and rising oil prices.
Forex traders said negative trends in domestic stocks and continued overseas capital outflows also worsened investor sentiment.
The rupee opened at 83.51 rupees against the dollar and hit a low of 83.53 rupees in the first trade, down 9 paise from the previous close, according to Interbank Foreign Exchange.
On Monday, the rupee depreciated by 6 paise to settle at 83.44 rupees against the US dollar.
Anil Kumar Bhansali, head of finance and executive director at Finrex Treasury Advisors LLP, said that the tensions in the Middle East and rising U.S. yields have led overseas portfolio investors to buy dollars and sell stocks to avoid risk. As a result, the rupee depreciated further.
“We need to watch what the Reserve Bank of India (RBI) does to counter the rupee depreciation,” Bhansali added.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.13% to 106.34.
Brent crude oil futures, the world’s crude oil benchmark, rose 0.53% to $90.58 per barrel as tensions in the Middle East rise and Israel considers its response to an attack on Iran.
In the domestic stock market, the 30-share BSE Sensex was trading 307.44 points or 0.42 per cent lower at 73,092.34 points. The broader NSE Nifty fell 76.50 points or 0.34 per cent to 22,196.00 points.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday, offering shares worth Rs 3,268 billion, according to exchange data.
On the macroeconomic front, the country’s wholesale inflation rose slightly to 0.53% in March, the highest level in three months, compared to 0.20% in the previous month, due to higher prices of vegetables, potatoes, onions, and crude oil.
Furthermore, India’s merchandise exports declined marginally to USD 41.69 billion in March, down 3.11% to USD 437.06 billion in the previous year, mainly due to continued geopolitical turmoil and weak global trade. Ta.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
