Forex traders said overnight strengthening of the dollar, higher oil prices and demand from importers for the dollar at the end of the month are likely to impact the domestic unit.
Forex traders said overnight strengthening of the dollar, higher oil prices and demand from importers for the dollar at the end of the month are likely to impact the domestic unit.
The rupee on Wednesday lost 10 paise to close at 79.88 against the US dollar in early trade, tracking the strength of the greenback in the overseas market and firming crude oil prices.
At the interbank foreign exchange, the rupee opened at 79.83 against the US dollar, then opened at 79.88 against the greenback, down 10 paise over the previous close.
On Tuesday, the rupee had closed at 79.78 against the US currency. However, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.16% to 107.02.
Global oil benchmark Brent crude futures rose 0.13% to $104.54 a barrel.
Forex traders said overnight strengthening of the dollar, higher oil prices and demand from importers for the dollar at the end of the month are likely to impact the domestic unit.
“Investors can avoid taking large positions ahead of the monthly close and the US Fed’s decision in the evening,” said Sriram Iyer, Senior Research Analyst, Reliance Securities.
On the domestic equity market front, the 30-share Sensex was trading 49.34 points or 0.09% lower at 55,219.15, while the broader NSE Nifty was down 21.90 points or 0.13% at 16,461.95.
Foreign institutional investors remained net sellers in the capital markets on Tuesday as they sold shares worth Rs 1,548.29 crore, according to exchange data.