Rupee opens 5 paise lower at 82.79 against the US dollar

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The Indian rupee opened 5 paise lower against the US dollar on Tuesday following weakness in other Asian currencies amid a recovery in the dollar index. The local currency opened at 82.79 a dollar as compared to the previous close of 82.84.

The dollar index rose in Asia, and has now recovered a large part of its losses suffered post the US jobs data. Asian currencies were down between 0.2% and 0.6%, with the offshore Chinese yuan slipping to 7.2250 to the dollar, Reuters reported.

On Monday, the rupee ended 10 paise higher at 82.84 a dollar.

Investors will focus on the US inflation data due on Thursday for further outlook of the Federal Reserve.

“Rupee is likely to depreciate today amid firm dollar and weak global market sentiments. Further, elevated crude oil prices may hurt rupee. Oil prices are rising on concerns over supply crunch amid production cuts by Saudi Arabia and Russia. Moreover, investors will remain cautious ahead of major economic data from US and China to gauge health of economy,” ICICI Direct said in a note.

USDINR is likely to hold the support near 82.70 level and rise back till 82.90 level, it added. 

Crude oil prices rose amid concerns over supply arising from production cuts by Saudi Arabia and Russia.

Brent crude futures rose 0.19% to $85.50 a barrel, while US West Texas Intermediate crude was up 0.26% at $82.15 a barrel.

On the domestic front, the Indian equity benchmark indices, Sensex and Nifty were trading higher in the early session.

On Monday, the Foreign institutional investors (FIIs) net sold Indian shares worth 1,892.77 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of 1,080.80 crore, as per provisional data available on the exchanges.

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(With inputs from Reuters)

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Updated: 08 Aug 2023, 09:20 AM IST

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