Rupee falls 37 paise to 82.29 against US dollar in early trade

MUMBAI: The rupee depreciated 37 paise to 82.29 against the US dollar in early trade on Wednesday, weighed down by strength of the American currency in the overseas market and a negative trend in domestic equities.

At the interbank foreign exchange, the domestic unit opened weak at 82.25 against the dollar, then fell to 82.29, registering a decline of 37 paise over its last close.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18 per cent to 105.80 on Wednesday.

US Federal Reserve Chair Jerome Powell’s remarks on interest rate trajectory pushed the dollar higher.

On Tuesday, Powell said the latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes, he added.

Stock and money markets were closed on Tuesday on account of Holi.

Brent crude futures, the global oil benchmark, advanced 0.28 per cent to USD 83.52 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 348.62 points or 0.58 per cent lower at 59,875.84 points. The broader NSE Nifty declined 93.60 points or 0.53 per cent to 17,617.85 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 721.37 crore, according to exchange data.