In early trade on Wednesday, the Indian rupee faced a decline of 4 paise against the US dollar, settling at 83.17 amidst various market pressures. The primary contributing factors included foreign investors offloading equities and a noticeable uptick in crude oil prices.
Forex traders reported that subdued sentiment in the domestic equity markets also played a role in the rupee’s depreciation. Opening at 83.13 at the interbank foreign exchange, the rupee slipped to 83.17 against the greenback, marking a 4-paise drop from its previous close of 83.13.
The domestic currency had settled slightly higher by 1 paisa at 83.13 in the previous trading session on Tuesday. Investors witnessed a range-bound movement in the Indian currency, largely influenced by concerns over the upcoming inflation numbers in both India and the United States, scheduled for release later this week.
Simultaneously, the dollar index, a measure of the greenback’s strength against a basket of six major currencies, was observed trading 0.02% lower at 102.26 on Wednesday. The global oil benchmark, Brent crude futures, registered a 0.23% increase, reaching $77.77 per barrel, adding to the economic complexities influencing the foreign exchange market.
In the domestic equity market, the 30-share benchmark Sensex was seen trading 28.34 points, or 0.04%, lower at 71,357.87. The broader Nifty also experienced a decline of 7.85 points, or 0.04%, settling at 21,537.
Foreign institutional investors (FIIs) were noted to have sold shares worth ₹990.90 crore on Tuesday, as per exchange data, underlining the foreign investor sentiment towards Indian equities.
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