Image for representational purposes only. , Photo credit: The Hindu
The rupee depreciated 24 paise to 82.09 against the US dollar in early trade on Tuesday as heavy selling pressure in domestic equities and rising crude oil prices overseas weighed on investor sentiment.
Besides, outflow of foreign funds put pressure on the domestic unit, forex dealers said.
At the interbank foreign exchange, the domestic unit opened weak at 81.94 against the dollar, then slipped to 82.09, registering a decline of 24 paise over its previous close.
In the previous session on Monday, the rupee had declined by 52 paise to close at 81.85 against the dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07% to 105.22.
Global oil benchmark Brent crude futures rose 0.94% to $83.46 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 353.44 points or 0.56% lower at 62,481.16. The broader NSE Nifty fell 99.30 points, or 0.53%, to 18,601.75.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth Rs 1,139.07 crore, according to exchange data.
The Reserve Bank’s rate-setting panel on Monday began brainstorming for the next round of monetary policy amid expectations of a modest interest rate hike of 25-35 basis points as inflation eased and economic growth showed signs of slowing. Are engaged.
The RBI has hiked the key benchmark lending rate by 50 basis points (bps) three times since June on top of an off-cycle 40 bps increase in repo in May.
RBI Governor Shaktikanta Das will announce the bi-monthly monetary policy on Wednesday (December 7) at the conclusion of the three-day Monetary Policy Committee (MPC) meeting.