Rupee extends slide, drops 6 paise to 83.23 against dollar in early trade

The rupee stayed on a downward track for the third consecutive session and depreciated by 6 paise to 83.23 against the US dollar in early trade on Thursday, tracking a firm American currency and negative equity market sentiment.

Forex traders said the Indian currency was pressured due to massive selling of equities by foreign investors, even as crude oil prices hovered close to $90 a barrel amid geopolitical tensions in West Asia.

At the interbank foreign exchange market, the local unit opened weak at 83.19 and then touched the lowest level of 83.23 against the greenback, registering a loss of 6 paise from its previous close.

This is the third day of fall in the rupee. It dropped 4 paise on Monday, followed by a dip of 1 paisa on Wednesday. Forex markets were closed on Tuesday on account of Dussehra. On Wednesday, the rupee closed at 83.17 against the US dollar.

Analysts attributed the strengthening dollar to a record rise in US Treasury yields after positive data on home sales in the US on Wednesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent higher at 106.75 on Thursday.

Global oil price benchmark Brent crude declined 0.31 per cent to $89.85 per barrel.

On the domestic equity market front, the Sensex plunged 478.55 points or 0.75 per cent to 63,570.51, while the broader Nifty tanked 152.15 points or 0.80 per cent to 18,970.

Foreign Institutional Investors sold equities worth Rs 4,236.60 crore on Wednesday, according to exchange data.