Representational image only.
| Photo Credit: The Hindu
The Rupee appreciated four paise to 83.28 against the U.S. dollar in early trade on January 3, supported by easing crude oil prices. However, forex traders said the Indian currency remained under pressure amid a negative trend in domestic equities.
At the interbank foreign exchange, the domestic currency opened at 83.30 and touched 83.28 against the greenback in initial trade, registering a rise of four paise from its previous close. On January 2, the domestic currency settled at 83.32 against the dollar.
“Brent oil prices fell to $75.88 per barrel as economic headwinds from interest rate jitters unravelled gains from worries on Houthi attacks in Red Sea oil movement. In the U.S., Dow Jones rose by 25 points while NASDAQ and S&P 500 fell as economic jitters continue to hit the markets,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP. “The Rupee is expected to trade in a range of 83.15 to 83.40 during the day,” Mr. Bhansali added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.11% lower at 102.08. Global oil price benchmark Brent crude fell 0.03% to $75.87 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 350.43 points or 0.49% lower at 71,542.05. The broader NSE Nifty fell 87.10 points or 0.4% to 21,578.70.
Foreign institutional investors (FIIs) were net buyers in the equity market on January 2 as they purchased shares worth ₹1,602.16 crore, according to exchange data.