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The rupee depreciated 2 paise to 82.77 against the US dollar in early trade on Monday due to foreign capital outflow and a rise in crude oil prices in the international market.
However, forex dealers said a weaker dollar against key rivals overseas capped the decline for the local unit.
At the interbank foreign exchange, the domestic unit opened weak at 82.80 against the dollar, then gained some ground to bid 82.77, down just 2 paise over its previous close.
In the previous session on Friday, the rupee had ended almost flat at 82.75 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.15% to 104.54.
Global oil benchmark Brent crude futures rose 1.20% to $79.99 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 67.61 points or 0.11% higher at 61,405.42. The broader NSE Nifty rose 14.65 points, or 0.08%, to 18,283.65.
Foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they sold shares worth Rs 1,975.44 crore, according to exchange data.
After pouring in over ₹36,200 crore last month, foreign investors continued their positive momentum and invested a net ₹10,555 crore in Indian equities so far in December amid stable oil prices and easing US inflation Is.
Going forward, FPI flows are expected to fluctuate among equity markets across the world as global central banks reiterate their intention to keep policy rates high for an extended period to prevent high inflation in their respective economies. Chief Shrikant Chauhan said. Equity Research, (Retail), Kotak Securities Ltd.