Indian rupee fell nearly 22 paise against the US dollar in opening trade on Tuesday on the back of steady capital outflows and strengthening of the American currency.
At 09:15 AM, the rupee was trading at 73.78 a dollar, down 22 paise from its Monday’s close of 73.56. The home currency opened at 73.70 and touched a high and a low of 73.70 and 73.78 a dollar, respectively.
On Monday, the rupee pared its early gains to settle 24 paise lower at 73.56 against the US dollar. The rupee came under pressure following heavy selling in domestic equities and the crude oil breaching the $80 per barrel mark on geo-political worries related to killing of Saudi journalist Jamal Khashoggi.
Unabated capital outflows by foreign funds, and heavy selling in domestic equities dampened the sentiment, according to market experts.
The BSE Sensex gave up all its early gains of over 435 points to end 181 points lower at 34,134.38 on Monday.
Meanwhile, foreign portfolio investors offloaded shares worth Rs 618.26 crore, while domestic institutional investors had net sold shares worth Rs 2.14 crore on Friday, as per provisional data.
Stronger US dollar further aggravated selling pressure on Tuesday. The dollar gained against its major peers, reining as the preferred safe haven currency.
The rupee is the worst performing emerging market currency having lost almost 15 percent since January this year. Between April and September the rupee has plummeted more than 7 percent to the dollar.
In debt markets, the yields on the 10-year government bonds rose 0.06 percent to 7.93 percent after closing at 7.93 percent on Tuesday. Bond yields and prices move in opposite directions.
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