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The rupee depreciated 12 paise to 82.90 against the US dollar in early trade on February 15, after US inflation data for January weighed on a firmer US currency that the Federal Reserve would keep interest rates high for a longer period. .
Forex dealers said a sluggish trend in the domestic equity market and firmness in crude oil prices weighed on investor sentiment.
At the interbank foreign exchange, the domestic unit opened weak at 82.90 against the dollar, registering a decline of 12 paise over its previous close.
The rupee had closed at 82.78 against the dollar in the previous session on Tuesday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.14% to 103.38.
Global oil benchmark Brent crude futures fell 0.70% to $84.98 a barrel.
“In overseas markets, the dollar index rebounded from session lows as January data showed the smallest annual increase in US consumer prices since October 2021, which did not change market expectations that interest rates would remain high for some time said Sriram Iyer, senior research analyst, Reliance Securities.
Data shows US CPI rose 6.4% in the 12 months through January, the smallest gain since October 2021.
In the domestic equity market, the 30-share BSE Sensex was trading 265.2 points or 0.43% lower at 60,767.06. The broader NSE Nifty fell 69.85 points, or 0.39%, to 17,860.00.
Foreign institutional investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth Rs 1,305.30 crore, according to exchange data.