Most Asian and emerging market peers started on a weak Tuesday morning amid risky trading amid geopolitical tensions near the Ukrainian border.
The rupee fell by 7 paise to 74.67 against the US dollar in early trade on January 25, weakening on the back of a firming US currency and a softening in the domestic equity market.
Forex traders said geopolitical tensions, sustained foreign fund outflows and higher crude oil prices also pulled down the local unit.
Apart from this, investors will also be waiting for the outcome of the meeting of the US Federal Reserve this week.
At the interbank foreign exchange, the rupee opened at 74.60 against the US dollar, then slipped further to 74.67, registering a fall of 7 paise from the previous close.
On Monday, the rupee had closed at 74.60 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.04% to 95.95.
“The US dollar hit a 2-week high against its key peers on Monday amid growing concerns about both a faster pace of Federal Reserve policy and a possible military conflict in Ukraine,” Reliance Securities said in a research note.
Most of Asian and emerging market peers started on a weak Tuesday morning amid risky trading amid geopolitical tensions near the Ukraine border, the note said.
Meanwhile, global oil benchmark Brent crude futures jumped 0.54% to $86.74 a barrel.
On the domestic equity market front, the 30-share Sensex was trading 305.79 points or 0.53% lower at 57,185.72, while the broader NSE Nifty was trading 71.25 points or 0.42% lower at 17,077.85.
Foreign institutional investors remained net sellers in the capital markets on Monday as they sold shares worth Rs 3,751.58 crore, according to stock exchange data.
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