Rupee Down 5 Paise to 87.11 Against U.S. Dollar

The rupee fell by 5 paise to 87.11 against the US dollar in early trade on March 6. The depreciation comes on the back of weakening American currency and crude oil prices as they failed to boost investor sentiments amid volatile equity markets and foreign funds outflow.

As per traders, the rupee found some cushion when the U.S. planned to delay the implementation of higher tariffs on Canada and Mexico. Additionally, RBI also planned to infuse ₹1.9 trillion into the banking system, which in turn strengthened the domestic unit. However, volatility in the equity markets dampened the investor sentiments in the currency.

The rupee opened stronger at 86.96, appreciating to 86.88, but it soon tumbled to 87.11 against the greenback, clocking a loss of 5 paise from its previous closing level.

Dollar index traded higher by 0.05% at 104.30. Brent Crude soared by 0.58% but stayed lower at $69.70 per barrel in futures trade.

Sensex was trading lower by 20.53 points, or 0.03% at 73,709.70, while the Nifty was down by 10.75 points, or 0.05% at 22,326.55.

Foreign institutional investors (FIIs) dumped Indian equities worth ₹2,895.04 crore on net basis on March 5, exchange data said.

Previously, RBI conducted a US dollar-rupee swap worth USD 10 billion to inject long-term liquidity into the system, with the auction eliciting robust demand.