The rupee weakened by 11 paise to 82.73 against the US dollar in early trade on Tuesday, December 20, 2022 as selling in domestic equities and rising crude oil prices in global markets weighed on the local unit.
However, forex traders said a weaker dollar against key rivals overseas supported the domestic currency and limited losses.
At the interbank foreign exchange, the local currency opened weak at 82.69 against the dollar, then declined to 82.73, registering a decline of 11 paise over its previous close.
In the previous session on Monday, the rupee had gained 13 paise to close at 82.62 against the dollar.
In the domestic equity market, the 30-share BSE Sensex was trading 303.59 points, or 0.49 per cent, lower at 61,502.60, and the broader NSE Nifty declined 95.85 points, or 0.52 per cent, to 18,324.60.
Meanwhile, the dollar index, which measures the strength of the dollar against six currencies, declined 0.37 per cent to 104.33.
Global oil benchmark Brent crude futures rose 0.89 per cent to $80.51 a barrel.
Foreign institutional investors were net sellers in the capital market on Monday as they sold shares worth ₹538.10 crore, according to exchange data.