Forex traders said there is risk aversion among investors amid mounting challenges posed by hints of aggressive Federal Reserve tightening and geopolitical uncertainties.
Forex traders said there is risk aversion among investors amid mounting challenges posed by hints of aggressive Federal Reserve tightening and geopolitical uncertainties.
The rupee depreciated 10 paise to 76.67 against the US dollar in opening trade on Thursday, weighed down by dollar strength and significant outflows of foreign funds.
On the interbank foreign exchange exchange, the rupee opened at 76.60 against the US dollar, then lost ground to trade at 76.67, down 10 paise from the last close.
On Wednesday, the rupee was little changed against the US dollar at 76.57.
The Dollar Index, which measures the dollar’s strength against a basket of six currencies, traded 0.37% higher to 103.34.
Forex traders said there is risk aversion among investors amid mounting challenges posed by hints of aggressive Federal Reserve tightening and geopolitical uncertainties.
Additionally, the dollar index hovering at 103 is an indication of a flight to safety. Dollar buying is likely to continue in the near term dragging the local unit lower, they added.
On the domestic stock market front, the 30-piece Sensex traded 253.12 points, or 0.45%, higher to 57,072.51 points, while the broader NSE Nifty rose 79.40 points, or 0.47%, to 17,117.80 points.
Global oil benchmark Brent crude futures fell 1.57% to $103.67 a barrel.
Overseas institutional investors were net sellers in the capital market on Wednesday, selling shares worth Rs 4,064.54 crore, according to stock market data.
