The rupee depreciated by 8 paise to 82.14 against the US dollar in early trade on Friday, dampened by foreign fund outflows and losses in domestic stocks.
On the interbank exchange rate, the domestic unit opened weak at 82.12 to the dollar before falling to 82.14, down 8 paise at its last close.
On Thursday, the rupee was trading at 82.06 against the US dollar.
“The 81.70-80 zone seems to be protected by importer dollar demand and suspected RBI intervention that pushed the INR back to 82.00 levels,” said Amit Pabari, MD, CR Forex Advisors.
Additionally, due to the end of the fiscal year, seasonality in March and the prospect of further FDI inflows could help curb the rupee’s losses despite weakness in its Asian counterparts last month, Pabari added.
The dollar index, which shows the strength of the US dollar against a basket of six currencies, fell 0.11 percent to 105.18.
“The DXY weakened from 105.70 to 105.20 as traders took profits overnight on higher jobless claims data,” Pabari said, adding that Friday is set for a Make-or-Break day for the DXY ahead of key US economic data. . later on.
Brent crude oil futures, which is considered the world standard of oil, decreased by 0.54 percent and amounted to 81.15 dollars per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 792.66 points or 1.33 percent lower at 59,013.62. The broader NSE Nifty was down 200.35 points, or 1.14 percent, at 17,389.25.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 561.78 crore, according to stock exchange data.
(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)
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