Mumbai rupee depreciated by 5 paise to 83.53 against the US dollar in early trade on Wednesday, weighed down by the strength of the US currency and elevated crude oil prices.
Forex traders said the rupee is trading in a tight range as purchases of US dollars by oil companies and foreign portfolio investors (FPIs) further dented investor sentiment, while a firm trend in Domestic stocks supported the rupee at lower levels.
At the interbank forex market, the rupee opened at 83.51 and lost ground to trade at 83.53 against the dollar in early trade, registering a drop of 5 paise from its previous closing level.
On Tuesday, the rupee depreciated by 4 paise and stood at 83.48 against the US dollar.
"...Global factors such as the elevated US DXY around 105.50, depreciation of the yen and yuan, and rising US bond yields have prevented the rupee from gaining significant strength and moving away from its low of several months," CR Forex Advisors CEO Amit Pabari said.
Rupee traders are on a roller coaster ride, albeit within a limited range of 83.20 to 83.70 for now, Pabari added.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading at 105.71, down 0.01 percent, following a rise in U.S. Treasury yields. .
Brent crude futures, the global oil benchmark, rose 0.55 percent to $86.71 a barrel.
In the domestic stock market, Sensex hit the historic mark of 80,000 and Nifty scaled new all-time highs in early trade. The BSE Sensex was later trading 446.5 points, or 0.56 per cent, higher at 79,887.95 points. The broader NSE Nifty advanced 132.50 points, or 0.55 per cent, to 24,256.35 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 2,000.12 crore, according to exchange data.
Forex traders said the rupee is trading in a tight range as purchases of US dollars by oil companies and foreign portfolio investors (FPIs) further dented investor sentiment, while a firm trend in Domestic stocks supported the rupee at lower levels.
At the interbank forex market, the rupee opened at 83.51 and lost ground to trade at 83.53 against the dollar in early trade, registering a drop of 5 paise from its previous closing level.
On Tuesday, the rupee depreciated by 4 paise and stood at 83.48 against the US dollar.
"...Global factors such as the elevated US DXY around 105.50, depreciation of the yen and yuan, and rising US bond yields have prevented the rupee from gaining significant strength and moving away from its low of several months," CR Forex Advisors CEO Amit Pabari said.
Rupee traders are on a roller coaster ride, albeit within a limited range of 83.20 to 83.70 for now, Pabari added.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading at 105.71, down 0.01 percent, following a rise in U.S. Treasury yields. .
Brent crude futures, the global oil benchmark, rose 0.55 percent to $86.71 a barrel.
In the domestic stock market, Sensex hit the historic mark of 80,000 and Nifty scaled new all-time highs in early trade. The BSE Sensex was later trading 446.5 points, or 0.56 per cent, higher at 79,887.95 points. The broader NSE Nifty advanced 132.50 points, or 0.55 per cent, to 24,256.35 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 2,000.12 crore, according to exchange data.
