Image used for representational purpose.
| Photo Credit: Reuters

The rupee declined 2 paise to 82.92 against the U.S. dollar in early trade on March 5, tracking a stronger American currency against major overseas rivals and outflow of foreign funds from domestic capital markets.

Though a downward trend in the crude oil prices cushioned the Indian currency, it was weighed down by the subdued equity market sentiment, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 82.90 and slipped further to trade at 82.92 against the greenback, registering a loss of 2 paise from its previous close.

On Monday, the rupee settled 1 paise lower at 82.90 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03% to 103.81.

Brent crude futures, the global oil benchmark, fell 0.17% to $82.66 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 259.97 points or 0.35% lower at 73,612.32 points. The broader NSE Nifty declined 83.95 points or 0.37% to 22,321.65 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹564.06 crore, according to exchange data.

Image used for representational purpose.
| Photo Credit: Reuters

The rupee stayed firm for the fourth straight session and gained 4 paise to 82.92 against the U.S. dollar in early trade on Thursday, tracking a weak American currency against major overseas rivals.

Forex trader said, however, the Indian currency was under pressure due to subdued equity market sentiment and elevated level of crude oil prices.

At the interbank foreign exchange, the domestic currency opened at 82.94 and gained further to 82.92 against the greenback in initial deals, registering a gain of 4 paise from its previous close.

The rupee settled 1 paisa higher at 82.96 against the U.S. dollar on Wednesday, after witnessing a cumulative gain of 8 paise in the preceding two sessions.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% lower at 103.87.

Analysts attributed the retreating dollar index to the U.S. Federal Reserve’s minutes that reflected policy makers’ cautious approach, ebbing the possibility of interest rate cuts in the immediate future.

Brent crude futures, the global oil benchmark, rose 0.13% to $83.14 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 32.44 points or 0.04% lower at 72,590.65 points. The broader NSE Nifty slipped 3.60 points or 0.02% to 22,051.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they purchased shares worth ₹284.66 crore, according to exchange data.