Rupee falls 12 paise to 82.96 against US dollar in early trade
rupee depreciated 12 paise to 82.96 against the US dollar in early trade on Friday, weighed down by a strong American currency and a negative trend in domestic equities. Forex traders said foreign fund outflows and elevated crude oil prices in the international market also dented investors' sentiments.
According to interbank foreign exchange, the rupee opened at 82.95 against the dollar and touched a low of 82.96 in the initial trade, registering a fall of 12 paise over its previous close.
On Thursday, the rupee depreciated 3 paise to settle at 82.84 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 103.43, higher by 0.07 per cent.
Traders said the dollar has strengthened against majors due to elevated inflation print from the US. «Elevated inflation prints are causing the markets to price out rate cut bets,» IFA Global Research Academy said in a research note.
Brent crude futures, the global oil benchmark, fell 0.18 per cent to USD 85.27 per barrel.
"… after the red hot inflation release, the rupee opened lower...and should remain in the range of 82.82 to 83.02 with exporters selling the dollars on all upticks," Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said.
On the domestic equity market, the 30-share BSE Sensex was trading 324.51 points, or 0.44 per cent, lower at 72,772.77 points. The broader NSE Nifty was down 103.85 points, or 0.47 per cent, to 22,042.80 points.
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