Mumbai, Aug 3 – The Indian rupee depreciated by 5 paise to reach 82.72 against the US dollar in early trade on Thursday, influenced by a negative trend in domestic equities and firm crude oil prices, dampening investor sentiments.
Forex traders reported sustained foreign fund outflows and the strength of the American currency in the overseas market, further adding to the downward pressure on the rupee.
Starting at 82.71 at the interbank foreign exchange, the domestic unit touched 82.72, marking a 5-paise decline compared to its previous close.
On the previous day, the rupee settled at 82.67 against the dollar, experiencing a significant fall of 45 paise from its last closing value, marking the largest single-day drop in nearly six months. The rupee had previously witnessed its steepest intraday fall of 68 paise on February 6, settling at 82.76 against the greenback.
Several factors contributed to the negative sentiment surrounding the rupee, including risk aversion in global markets and weakness among Asian currencies. Additionally, the dollar’s strength against major rivals overseas added to the downside pressure on the Indian currency.
The dollar index, which assesses the greenback’s strength against a basket of six currencies, rose by 0.10 per cent to 102.68.
Furthermore, Brent crude futures, the global oil benchmark, advanced by 0.10 per cent to USD 83.28 per barrel, contributing to the overall economic landscape.
In the domestic equity market, the 30-share BSE Sensex traded 23.31 points or 0.04 per cent lower at 65,759.47, while the broader NSE Nifty declined by 11.90 points or 0.06 per cent to 19,514.65.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday, offloading shares worth Rs 1,877.84 crore, according to exchange data.
