Rupee falls 5 paise to 83.53 against US dollar in early trade

Mumbai: The Indian rupee lost 5 paise against the US dollar in the morning session on Wednesday, influenced by the robust US currency and high crude oil costs. According to forex traders, the rupee is staying within a limited range due to oil companies and Foreign Portfolio Investors (FPIs) buying US dollars, affecting investor confidence. However, the rupee is being supported at lower levels by a strong performance in domestic equities.

In the interbank foreign exchange market, the rupee started at 83.51 and declined to 83.53 against the dollar in early trading, marking a 5 paise drop from the last closing price. The rupee lost 4 paise on Tuesday and ended at 83.48 against the US dollar.

Sure, please provide the text that you would like me to paraphrase. MD of CR Forex Advisors, Amit Pabari, stated that the rupee has been unable to strengthen significantly and move away from its multi-month low due to global factors including the high US DXY, devaluation of the Yen and Yuan, and increasing US bond yields around 105.50.

According to Pabari, rupee traders can expect a volatile experience, but the currency will remain limited between 83.20 and 83.70 for now. At the same time, the dollar index, which measures the strength of the US dollar against a group of six currencies, was at 105.71, showing a decrease of 0.01% due to increasing US treasury yields.

Brent crude futures, the worldwide oil standard, increased by 0.55 percent to reach USD 86.71 per barrel. In early trading, Sensex reached a historic milestone of 80,000 and Nifty achieved new all-time highs in the local stock market. The BSE Sensex saw an increase of 446.5 points, equivalent to 0.56%, reaching 79,887.95 points in later trading. The NSE Nifty expanded by 132.50 points, representing a 0.55 percent increase, reaching 24,256.35 points.

According to data from the exchange, Foreign Institutional Investors (FIIs) sold shares worth Rs 2,000.12 crore in the capital markets on Tuesday.

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