In early trade on Tuesday, the rupee fell 17 paise to 83.23 against the US dollar, as a strong currency and persistent foreign money outflows impacted on market morale.
Investor morale was further dampened, according to forex dealers, by a negative trend in local shares.
At the interbank foreign exchange, the domestic unit started at 83.21, then fell to 83.23, a 17-paise drop from its previous level.
The rupee rose 13 paise to 83.06 per dollar on Friday.
Due to Mahatma Gandhi Jayanti, the local forex market was closed on Monday.
According to CR Forex Advisors MD-Amit Pabari, the RBI has recently engaged in strategic selling of dollars through public sector banks in reaction to potential threats, particularly the rupee’s fragility against the dollar. – In early trade
The RBI Governor’s six-member Monetary Policy Committee (MPC) will meet for three days beginning October 4th. Governor Skhatikanta Das will make the announcement on Friday, October 6.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.20 percent to 107.11.
Brent crude futures, the global oil benchmark, slid 0.90 percent to USD 89.89 a barrel.
In the domestic equities market, the 30-share BSE Sensex was down 407.84 points, or 0.62 percent, at 65,420.57. The NSE Nifty slid 120.20 points, or 0.61 percent, to 19,518.10.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, offloading shares worth Rs 1,685.70 crore.
Meanwhile, the country’s foreign exchange reserves fell by USD 2.335 billion to USD 590.702 billion for the week ending September 22, according to the Reserve Bank.
The entire reserves fell by USD 867 million in the previous week to USD 593.037 billion.
