Mumbai, Mar 18 (PTI) The rupee fell 3 paise to 92.43 against the US dollar in early trade on Wednesday, weighed down by FII outflows and a stronger greenback amid the raging war in West Asia.
A fall in global crude oil prices and a positive opening at the domestic equity markets prevented a sharper decline in the local unit, according to forex traders.
At the interbank foreign exchange, the local unit opened at 92.42 against the greenback before slipping to 92.43, down 3 paise from its previous close.
The domestic unit on Tuesday hit the lowest intra-day level of 92.47 against the dollar before settling at an all-time low of 92.40, down 12 paise from its previous close.
“The rupee has been in a range for the past few days with 92.50 getting protected by the Reserve Bank but FIIs and oil companies are buying dollars on a consistent basis,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Foreign institutional investors sold equities worth Rs 4,741.22 crore on a net basis on Tuesday, according to exchange data.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 per cent higher at 99.60.
Brent crude, the global oil benchmark, was trading 1.32 per cent lower at USD 102.0 per barrel in futures trade.
“The Middle East conflict has not changed for the better and has kept oil above USD 100 while dollar index is still well bid at 99.50 though unable to cross the 100.50-mark,” Bhansali said..
On the domestic equity market front, the Sensex was up 373.53 points, or 0.49 per cent, to 76,444.37, while the Nifty rose 114.40 points, or 0.49 per cent, to 23,695.55.
