Rupee drops to 83.44 against US dollar

Forex traders cited a robust US dollar in global markets and crude oil prices above USD 90 per barrel as factors dampening investor sentiment.

Mumbai: The rupee declined 6 paise to 83.44 against the US dollar in early trade on Monday, tracking negative equity markets and withdrawal of foreign funds amid renewed concerns over geopolitical tensions in the Middle East.

Forex traders said a strong American currency in the overseas market and curde oil prices hovering above USD 90 per barrel also dented investor sentiments.

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At the interbank foreign exchange, the rupee opened at 83.46 against the dollar and gained slightly to 83.44 in the initial trade, registering a fall of 6 paise over its previous close.

On Friday, the rupee closed 7 paise lower at 83.38 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength ag1111106ainst a basket of six currencies, was trading 0.08 per cent lower at 105.75.

The higher dollar index was attributed to diminishing expectations of an immediate rate cut by the US Federal Reserve.

Brent crude futures, the global oil benchmark, declined 0.31 per cent to USD 90.17 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 569.05 points, or 0.77 per cent lower at 73,675.85 points. The broader NSE Nifty was down 178.95 points, or 0.79 per cent, to 22,340.45 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they sold shares worth Rs 8,027 crore, according to exchange data.

India’s forex reserves jumped by USD 2.98 billion to a fresh peak of USD 648.562 billion for the week ended April 5, the RBI said on Friday.