Rupee falls 16 paise to all-time low of 82.33 against US dollar in early trade
The rupee depreciated 16 paise to an all-time low of 82.33 against the US dollar in early trade as a firm American currency and risk-averse sentiment among investors weighed on the local unit
The rupee depreciated 16 paise to an all-time low of 82.33 against the US dollar in early trade on Friday as a firm American currency and risk-averse sentiment among investors weighed on the local unit.
Moreover, a negative trend in domestic equities and elevated crude oil prices sapped investor appetite, forex traders said.
At the interbank foreign exchange, the rupee opened at 82.19 against the greenback, then fell to 82.33, registering a fall of 16 paise over its previous close.
On Thursday, the Indian currency for the first time closed below the 82 level against the greenback. It plunged 55 paise to close at a record low of 82.17 against the US currency.
"An uptick in crude prices has caused concerns around the trade deficit to resurface. US rates staying higher for longer is not helping the capital account," IFA Global Research Academy said in a note.
Moreover, the Reserve Bank of India (RBI) seems to have become conservative in spending reserves, it said, adding that these factors are causing the rupee to adjust.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.14 per cent down at 112.10.
Global oil benchmark Brent crude futures fell 0.10 per cent to USD 94.33 per barrel.
Equity benchmark indices fell in early trade on Friday amid a weak trend in global equity markets.
The 30-share BSE Sensex declined 236.59 points to 57,985.51 after a weak start. The broader NSE Nifty dipped 69.95 points to 17,261.85.
Among the 30-share Sensex pack, IndusInd Bank, Tata Steel, ICICI Bank, Mahindra & Mahindra, State Bank of India, HDFC Bank, Bajaj Finance and ITC were the major laggards in early trade.
On the other hand, Titan, Maruti, HCL Technologies and Reliance Industries were the winners.
Elsewhere in Asia, markets in Tokyo, Shanghai and Hong Kong were quoting lower, while Seoul was in the green.
The US markets ended lower on Thursday.