Rupee Slips 3 Paise to 83.15 Against the US Dollar in Early Trade

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The Indian rupee experienced a 3 paise depreciation against the US dollar on Wednesday, reaching 83.15. This decline was attributed to the US dollar’s strength against major global currencies and significant selling in the domestic equity markets. Despite these pressures, the rupee was supported by foreign fund inflows into the domestic equity markets and a reduction in crude oil prices in the international market.

Opening at 83.13 at the interbank foreign exchange, the rupee extended its losses to 83.15 against the dollar, marking a 3 paise drop from the previous close. In the previous session, the rupee had witnessed a 26 paise decline, settling at 83.12 against the US dollar.

Simultaneously, the dollar index, which measures the strength of the greenback against six major currencies, saw a 0.08% increase, reaching 103.19 on Wednesday. Analysts pointed to the continuous strengthening of the US dollar driven by safe-haven demand amid concerns about disruptions in global trade, particularly through the Red Sea route.

While Brent crude futures, the global oil benchmark, experienced a 0.47% decline, reaching $77.92 per barrel, the domestic equity market witnessed a downturn. The 30-share BSE Sensex recorded a 0.98% decline, or 719.37 points, at 72,409.40, and the broader NSE Nifty saw a 1.06% decrease, or 233.10 points, at 21,799.20.

Foreign Institutional Investors (FIIs) played a role in supporting the equity market, with net buying of shares worth Rs 656.57 crore on Tuesday, as per exchange data. Despite the challenges faced by the rupee, these factors contributed to mitigating a sharper decline.