Rupee falls 7 paise to 82.11 against US dollar

Mumbai: The rupee depreciated 7 paise to 82.11 against the US dollar in early trade on Wednesday, weighed down by firm crude oil prices and a negative trend in domestic equities.

Forex traders said foreign fund outflows and strengthening of the American currency in the overseas market dented investor sentiments.

At the interbank foreign exchange, the domestic unit opened weak at 82.10 against the dollar, then fell to 82.11, registering a decline of 7 paise over its last close.

On Tuesday, the rupee settled at 82.04 against the dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 101.78.

Brent crude futures, the global oil benchmark, declined 0.18 per cent to USD 84.62 per barrel.

The USDINR pair is holding well above 82.00 mark and waiting for the fresh triggers to mark its move past 82.20 levels, CR Forex Advisors MD-Amit Pabari said.

Pabari further added that widening deficits, rising oil prices, and squeezing interest rate differentials between US and India set a floor for fresh rounds of outflows from the Indian bond market.

In the domestic equity market, the 30-share BSE Sensex was trading 71.9 points or 0.12 per cent lower at 59,655.11. The broader NSE Nifty declined 15.70 points or 0.09 per cent to 17,644.45.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 810.60 crore, according to exchange data.