Rupee slips 12 paise to 77.62 against US dollar in early trade

Mumbai: The rupee slipped 12 paise to 77.62 against the US dollar in early trade on Thursday, tracking the strength of the American currency in the overseas market.

At the interbank foreign exchange, the rupee opened at 77.61 against the American dollar, then lost ground to quote at 77.62, registering a fall of 12 paise from the last close.

On Wednesday, the rupee recovered from its record low to close 21 paise higher at 77.50 against the American currency.

The Indian rupee opened weaker against the dollar on Thursday, weighed down by a recovery in the US dollar and strengthening bond yields, said Sriram Iyer, Senior Research Analyst at Reliance Securities.

However, a sell-off in the crude oil prices on Thursday morning could cap the depreciation bias, Iyer noted.

Global oil benchmark Brent crude futures fell 1.57 per cent to USD 114.46 per barrel.

Moreover, Asian and emerging market peers were weaker on Thursday morning and could weigh on sentiments, Iyer said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent higher at 102.55.

On the domestic equity market front, the 30-share Sensex was trading 87.97 points or 0.16 per cent lower at 55,293.20, while the broader NSE Nifty declined 36.80 points or 0.22 per cent to 16,485.95.

Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 1,930.16 crore, as per stock exchange data.