Rupee declines 5 paise to 83.43 against US dollar in early trade

Mumbai, Apr 29 (PTI) The rupee depreciated 5 paise to 83.43 against the US dollar in early trade on Monday amid a strong American currency overseas and withdrawal of foreign funds from domestic equity markets.

However, positive sentiment in the domestic equity markets and retreating crude oil prices in international markets supported the Indian currency at lower level, forex traders said.

At the interbank foreign exchange, the domestic unit opened weak at 83.39 against the greenback and then slipped further to 83.43, registering a loss of 5 paise compared to its previous closing level.

On Friday, the rupee had declined 10 paise to close at 83.38 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, increased 0.05 per cent to 105.86.

Analysts attributed the strengthening dollar to the positive global trends amid firm growth in the world’s largest economy, which renewed hope for a reduction in the interest rate by the US Federal Reserve.

Brent crude futures, the global oil benchmark, declined 0.92 per cent to USD 88.68 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 271.80 points or 0.37 per cent higher at 74,001.96. The broader NSE Nifty advanced 72.45 points or 0.32 per cent to 22,492.40.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth Rs 3,408.88 crore, according to exchange data.