Rupee falls 14 paise to 82.53 against U.S. dollar

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| Photo Credit: The Hindu

The Rupee depreciated 14 paise to 82.53 against the U.S. dollar in early trade on June 5, weighed down by the strength of the American currency in the overseas market and rising crude oil prices.

At the interbank foreign exchange, the domestic unit opened at 82.47, then fell to 82.53, registering a decline of 14 paise over its last close. On June 2, the Rupee had settled at 82.39 against the dollar.

Forex traders said the Indian Rupee opened weak on the rise in oil prices and dollar index. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.09% to 104.10. Brent crude futures, the global oil benchmark, rose 1.17% to $77.02 per barrel.

“Brent oil prices rose to $76.36 per barrel after Saudi Arabia announced a unilateral cut in oil production by one million barrels per day. The Asian currencies fell as U.S. dollar index rose,” said Anil Kumar Bhansali, Head of Treasury Finrex Treasury Advisors LLP.

In the domestic equity market, the 30-share BSE Sensex was trading 230.95 points or 0.37% higher at 62,778.06. The broader NSE Nifty advanced 52.45 points or 0.28% to 18,586.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹658.88 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped by $4.339 billion to $589.138 billion for the week ended May 26, the Reserve Bank of India said on Friday. In the previous week, the reserves had declined by $6.052 billion to $593.477 billion.