The Indian rupee depreciated 12 paise to 74.61 against the U.S. dollar in opening trade on July 14 as firm American currency and weak domestic equities weighed on investor sentiment.
At the interbank foreign exchange, the rupee opened at 74.57 against the dollar, then fell further to 74.61, registering a fall of 12 paise over its previous close.
On July 13, the rupee had settled at 74.49 against the U.S. dollar.
“The Indian rupee opened weak this Wednesday tracking the broad strength of the dollar as a rise in U.S. inflation will spur bets of a faster monetary policy tightening than previously estimated,” Reliance Securities said in a research note.
Meanwhile, oil prices continued their upward trajectory, while coronavirus infections surged in some parts of the world, weighing on sentiments as outbreaks became more pronounced, the note added.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading down 0.02% at 92.72.
Global oil benchmark Brent crude futures fell 0.31% to $76.25 per barrel.
On the domestic equity market front, BSE Sensex was trading 85.36 points or 0.16% lower at 52,684.37, while the broader NSE Nifty declined 25.55 points or 0.16% to 15,786.80.
Foreign institutional investors were net buyers in the capital market on July 13 as they purchased shares worth ₹113.83 crore, as per exchange data.
