The Indian rupee faced a marginal decline of 1 paisa against the US dollar in early trade on Thursday, reaching 83.15. This dip is attributed to the surge in crude oil prices and the withdrawal of foreign funds. Despite the US dollar weakening against major currencies globally, negative sentiments in the domestic equity markets exerted pressure on the Indian currency.
Opening at 83.16 at the interbank foreign exchange, the rupee edged down to 83.15 against the US dollar during morning trading, marking a 1 paisa loss compared to its previous close of 83.14 on Wednesday. The dollar index, indicating the greenback's strength against a basket of six currencies, was down 0.16% at 103.04 on Thursday.
The retreat of the US dollar followed the release of data showing a higher-than-expected increase in retail sales, diminishing expectations of an interest rate cut by the Federal Reserve. Additionally, Brent crude futures, the global oil benchmark, rose by 0.24% to USD 78.07 per barrel, contributing to the overall market dynamics.
In the domestic equity market, the 30-share BSE Sensex experienced a decline of 381.69 points, or 0.53%, reaching 71,119.07. The broader NSE Nifty also decreased by 131.35 points, or 0.61%, settling at 21,440.60. On Wednesday, Foreign Institutional Investors (FIIs) were net sellers in the equity market, selling shares worth Rs 10,578.13 crore, according to exchange data.
(With Agency Inputs)
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