The rupee depreciated 31 paise to 81.89 against the US dollar in early trade on Tuesday, January 17, 2023 due to strengthening in the American currency and fall in crude oil prices.
Forex traders said sustained foreign fund outflows further weighed on investor sentiment.
At the interbank foreign exchange, the domestic unit opened weak at 81.79 against the dollar, then settled at 81.89, registering a decline of 31 paise over its previous close.
The rupee had closed at 81.58 against the US dollar in the previous session on Monday.
Meanwhile, the dollar index, which measures the strength of the US dollar against a basket of six currencies, rose 0.18 per cent to 102.38.
Global oil benchmark Brent crude futures rose 0.19 per cent to $84.62 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 280.06 points or 0.47 per cent higher at 60,373.03. The broader NSE Nifty rose 44.90 points, or 0.25 per cent, to 17,939.75.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth ₹750.59 crore, according to exchange data.
Meanwhile, on the domestic macroeconomic front, India’s exports declined by 12.2 per cent to USD 34.48 billion in December 2022, mainly due to global headwinds, and the trade deficit widened to USD 23.76 billion during the same period .
Imports also declined by 3.5 per cent to $58.24 billion last month from $60.33 billion in the year-ago period.
In December 2021, exports stood at USD 39.27 billion and trade deficit at USD 21.06 billion.