Rupee drops to 83.48 against dollar in early trade

Forex traders noted that despite the continuous influx of foreign capital, the local unit initially resisted the decline but eventually succumbed to pressure, influenced by a subdued domestic equity market trend.

Mumbai: The rupee fell 4 paise to 83.48 against the US dollar on Thursday due to firm American currency and an upward trend in crude oil prices overseas.

The local unit resisted the fall amid the unabated inflow of foreign capital but gave in to the pressure due to a muted trend in the domestic equity markets, forex traders said.

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At the interbank foreign exchange market, the local unit opened at 83.43 and lost further to 83.48 against the greenback, registering a fall of 4 paise from its previous close.

On Wednesday, the rupee settled 1 paisa lower at 83.44 against the US dollar. “The local currency’s upward momentum was halted by a strong US dollar and rising crude oil prices in the international market,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.02 per cent at 104.90.

Brent crude futures, the global oil benchmark, advanced 0.02 per cent to USD 85.09 per barrel.

In the domestic equity markets, the 30-share BSE Sensex fell 72.43 points, or 0.09 per cent, to 77,265.16 points. The broader NSE Nifty declined 30.25 points, or 0.13 per cent, to 23,485.75 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth Rs 7,908.36 crore, according to exchange data.