Rupee falls 6 paise to 83.58 against US dollar in early trade

Reserve Bank of India headquarter. [File Photo]

The Indian rupee depreciated by 6 paise to 83.58 against the US dollar early on Friday, influenced by a negative trend in domestic equities and high crude oil prices.

According to forex traders, the strength of the US dollar in the global market also impacted investor sentiment.

At the opening of interbank foreign exchange, the rupee started at 83.58 against the dollar, marking a decline of 6 paise from its previous close.

However, the local currency recovered from its initial losses and reached a high of 83.46 against the US dollar in early trade on Friday.

On Thursday, the rupee bounced back from its record low and closed 9 paise higher at 83.52 against the US dollar.

Meanwhile, the dollar index, which measures the dollar’s strength against a basket of currencies, stood at 106.17, up by 0.02 per cent.

Brent crude futures, the global oil benchmark, climbed by 2.46 per cent to USD 89.25 per barrel.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, mentioned that Brent oil prices rose to USD 90.48 per barrel following Iran’s threat to reconsider its position on nuclear weapons if Israel attacked Tehran’s nuclear facilities, PTI reported.

In Asian markets, currencies experienced a slight decline amid escalating conflict: the Indonesian rupiah fell to 16281, the South Korean won dropped to 1390, and the Chinese yuan (CNH) was lower at 7.2569. The Japanese yen strengthened to 153.68 due to risk aversion.

“Risk-off sentiments are likely to keep the rupee under pressure,” Bhansali commented.

On the domestic stock market, the 30-share BSE Sensex was trading down by 489.77 points, or 0.68 per cent, at 71,999.22 points. The broader NSE Nifty was also down by 144.35 points, or 0.66 per cent, at 21,851.50 points.

According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, having offloaded shares worth Rs 4,260.33 crore.

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