Re falls 11ps,settles at 83.32/1$

Mumbai: The rupee depreciated by 11paise to 83.32 against the US dollar on Tuesday, amid a muted trend in domestic equities and dollar demand from importers. Forex traders said foreign fund outflows and dollar demand from importers weighed on investor sentiments. At the interbank foreign exchange market, the local unit opened at 83.28 and finally settled at 83.32 against the dollar, down by 11paise from its previous close. On Monday, the rupee depreciated by 5paise to 83.21 against the US dollar, in the first trading session of the year 2024. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.11 per cent up at 101.44 on Tuesday. Brent crude futures, the global oil benchmark was trading higher by 2.13 per cent to $78.68 per barrel. On the domestic equity market front, Sensex declined 379.46 points, or 0.53 per cent, to settle at 71,892.48 points. The Nifty fell 76.10 points, or 0.35 per cent, to 21,665.80 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs855.80 crore, according to exchange data. The Indian rupee depreciated by 0.14 per cent on weak domestic markets and a positive US dollar. Surge in crude oil prices also weighed on rupee.

US dollar rose on safe haven appeal amid geopolitical tensions in the Red Sea and the ongoing conflict in the Middle East, according to Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.