The rupee’s decline came after a negative trend in domestic equities amid heightened global oil supply concerns.
The rupee’s decline came after a negative trend in domestic equities amid heightened global oil supply concerns.
The rupee fell 28 paise against the US dollar to 76.46 at the open on Tuesday, to 76.46, after a negative trend in domestic stocks emerged amid heightened concerns over global oil supplies.
On the interbank foreign exchange exchange, the rupee opened sharply lower at 76.39 against the US dollar, then slipped further to 76.46, down 28 paise from the last close.
On Monday, the rupee fell 34 paise to close at 76.18 against the US dollar.
Global oil benchmark Brent crude futures rose 2.22 percent to $118.19 a barrel.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.17 percent to 98.66.
The rupee opened weak against the dollar this Tuesday as Treasury yields rose sharply after Federal Reserve Chair Jerome Powell signaled his willingness to hike rates more aggressively to fight inflation, Sriram Iyer said, Senior Research Analyst at Reliance Securities.
Additionally, most Asian and emerging market peers were also weak this Tuesday morning and a continued rise in crude oil prices will also weigh on domestic sentiment.
On the domestic stockmarket front, the 30-stock Sensex was down 173.55 points, or 0.30 percent, to 57,118.94, while the broader NSE Nifty was down 55.25 points, or 0.32 percent, to 17,062.35.
Overseas institutional investors remained net sellers in the capital market on Monday, selling shares worth Rs 2,962.12 crore, according to stock market data.
