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| Photo Credit: VIVEK PRAKASH
The rupee depreciated 13 paise to 82.84 against the US dollar in early trade on Tuesday amid the withdrawal of foreign funds from domestic equities and firm crude oil prices.
Positive sentiment in the equity markets failed to provide support to the Indian currency facing pressure due to the elevated level of greenback, forex traders said.
At the interbank foreign exchange, the domestic unit opened at 82.78, then touched the lowest level of 82.84 against the American currency, registering a decline of 13 paise over its last close.
On Monday, the rupee had settled at 82.71 against the dollar.
Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said, “Volatility in rupee remained low following lack of cues on the domestic as well as global front.”
In the next couple of sessions, services PMI number from major economies will likely trigger a move for the rupee.
“Today, the focus will be on the services PMI number that will be released from the Euro zone and the UK. The better-than-expected economic number could lift the major crosses higher. We expect the USD-INR (Spot) to trade sideways with a negative bias and quote in the range of 82.30 and 82.80,” Somaiya said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.01% to 104.23.
Brent crude futures, the global oil benchmark, was trading 0.04% lower to $88.96 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 43.46 points or 0.07% higher at 65,671.60. The broader NSE Nifty advanced 17.85 points or 0.09% to 19,546.65.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹3,367.67 crore, according to exchange data.
