Rupee falls 11 paise to 83.32 against US dollar in early trade

Mumbai: The rupee depreciated 11 paise to 83.32 against the US dollar in the morning session on Tuesday, tracking a negative trend in domestic equities and the strength of the American currency in the overseas market.

Forex traders said foreign fund outflows and dollar demand from importers weighed on investor sentiments.

At the interbank foreign exchange, the rupee opened at 83.28 against the dollar, then fell to 83.32, registering a fall of 11 paise over its previous close.

On Monday, the rupee depreciated by 5 paise to 83.21 against the US dollar, in the first trading session of the year 2024.

"The USDINR pair is expected to remain in the range 83.15-83.40 with 83.40 being a near-term top for the pair as the Reserve Bank of India (RBI) continues to keep a strong presence in the movement of the pair," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, Brent crude futures, the global oil benchmark, was trading higher by 1.60 per cent to USD 78.27 per barrel.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.20 per cent higher at 101.53.

In the domestic equity market, the 30-share BSE Sensex was trading 76.56 points or 0.11 per cent lower at 72,195.38 points. The broader NSE Nifty fell 4.85 points or 0.02 per cent to 21,737.05 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 855.80 crore, according to exchange data.

On the domestic macroeconomic front, GST collections rose 10 per cent to about Rs 1.64 lakh crore in December compared to Rs 1.49 lakh crore in the same month a year ago.

During April-December 2023, gross Goods and Services Tax (GST) collection witnessed a robust 12 per cent growth, reaching Rs 14.97 lakh crore against Rs 13.40 lakh crore mopped up in the same period of the previous year, the finance ministry said in a statement on Monday.