Rupee slides 6 paise to 83.58 against dollar in early trade

Forex Traders Cite Overseas Strength of Dollar, Dampening Investor Sentiment

Mumbai: The rupee depreciated 6 paise to 83.58 against the US dollar in early trade on Friday, weighed down by a negative trend in domestic equities and elevated crude oil prices.

Forex traders said the strength of the American currency in the overseas market also dented investor sentiments.

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At the interbank foreign exchange, the rupee opened at 83.58 against the dollar, registering a fall of 6 paise over its previous close.

The local unit pared the initial losses and also touched a high of 83.46 against the American currency in early trade on Friday.

On Thursday, the rupee rebounded from its all-time low level and closed 9 paise higher at 83.52 against the US dollar Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 106.17, higher by 0.02 per cent.

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

“Brent Oil prices moved up to USD 90.48 per barrel after Iran threatened to review its stance on nuclear weapons if Israel attacked Tehran’s nuclear sites,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Asian currencies were a tad lower on news of the conflict rising further as IDR fell to 16281, while the won fell to 1390. CNH also was lower at 7.2569. The yen was higher at 153.68 on account of risk aversion.

“Risk-off sentiments will keep the rupee on the weaker side,” Bhansali said.

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

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