Rupee falls 14 paise to 81.92 against US dollar in early trade

The rupee depreciated 14 paise to 81.92 against the US dollar in early trade on Tuesday, May 9, 2023, tracking the strength of the American currency in the overseas market.

Forex traders said factors like significant foreign fund inflows, positive domestic equities supported the local unit and restricted the downslide.

At the interbank foreign exchange, the domestic unit opened weak at 81.84 against the dollar, then fell to 81.92, registering a decline of 14 paise over its last close.

On Monday, the rupee settled at 81.78 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.07 per cent to 101.44.

Brent crude futures, the global oil benchmark, declined 0.40 per cent to USD 76.70 per barrel.

“The US inflation data is due tomorrow, which would clear the fog on whether the Fed must do more to rein in inflation. For now, the DXY would remain supported around the 100.50-100.80 zone and any upward surprise on the inflation would pull the fiat above 102.50 levels,” CR Forex Advisors MD Amit Pabari said.

Pabari further said that the consolidation phase could continue for a couple of sessions more but the pair is on the verge of a breakout and most likely on the upside towards 82.50-82.80 levels.

In the domestic equity market, the 30-share BSE Sensex was trading 57.62 points or 0.09 per cent higher at 61,821.87 points. The broader NSE Nifty advanced 22.80 points or 0.12 per cent to 18,287.20 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 2,123.76 crore, according to exchange data.