Rupee falls 10 paise to 73.94 against US dollar in early trade

Topics Rupee | US Dollar | Currency

Illustration by Binay Sinha

The rupee slipped 10 paise to 73.94 against the US dollar in opening trade on Tuesday, tracking muted domestic equities.

At the interbank forex market, the domestic unit opened weak at 73.94 against the greenback, showing a fall of 10 paise over its previous close.

On Monday, the rupee had settled at 73.84 against the US currency.

"Market participants continue to re-adjust their positions ahead of the US presidential elections. Risky bets are being taken off the table. Overall mood is that of caution," said Abhishek Goenka, Founder and CEO, IFA Global.

Goenka further added that markets are unnerved by lack of progress on fiscal stimulus, rising corona cases in Europe and the US and the latest escalation in US-China tensions.

"China's plan to sanction Boeing Defense, Lockheed Martin over arms sales to China has also spooked investors. Turkish lira depreciating past the 8 mark against the US dollar has skewed sentiment against EM currencies," he said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10 per cent to 92.95.

On the equity market front, BSE index Sensex was trading 11.80 points higher at 40,157.30, and the broader NSE Nifty advanced 20.55 points to 11,788.30.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 119.42 crore on a net basis on Monday, according to exchange data.

Brent crude futures, the global oil benchmark, increased 0.57 per cent to USD 40.69 per barrel.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel