The rupee declined 2 paise to 82.92 against the U.S. dollar in early trade on March 5, tracking a stronger American currency against major overseas rivals and outflow of foreign funds from domestic capital markets.
Though a downward trend in the crude oil prices cushioned the Indian currency, it was weighed down by the subdued equity market sentiment, forex traders said.
At the interbank foreign exchange, the domestic currency opened at 82.90 and slipped further to trade at 82.92 against the greenback, registering a loss of 2 paise from its previous close.
On Monday, the rupee settled 1 paise lower at 82.90 against the U.S. dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03% to 103.81.
Brent crude futures, the global oil benchmark, fell 0.17% to $82.66 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 259.97 points or 0.35% lower at 73,612.32 points. The broader NSE Nifty declined 83.95 points or 0.37% to 22,321.65 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹564.06 crore, according to exchange data.
