The Indian rupee has depreciated by 14 paise to 81.92 against the US dollar in early trade on May 9, 2023, amid the strength of the American currency in the global market.
However, forex traders noted significant foreign fund inflows and positive domestic equities restricted the rupee’s downslide.
The domestic unit initially opened weak at 81.84 against the dollar and then fell to 81.92 at the interbank foreign exchange, a decline of 14 paise over its previous close.
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On May 8, the rupee settled at 81.78 against the dollar.
The dollar index, which measures the greenback’s strength against six other currencies, rose by 0.07 percent to 101.44.
Meanwhile, Brent crude futures, the global oil benchmark, declined by 0.40% to USD 76.70 per barrel.
CR Forex Advisors MD Amit Pabari said the US inflation data was due the next day, which would clarify whether the Federal Reserve must do more to combat inflation.
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Pabari noted that for now, the DXY would likely remain supported around the 100.50-100.80 zone, and any upward surprise on the inflation would push the fiat above 102.50 levels.
He added that the consolidation phase could continue for a few more sessions, but the pair was on the verge of a breakout and likely on the upside towards 82.50-82.80 levels.
In the domestic equity market, the 30-share BSE Sensex traded 57.62 points or 0.09 percent higher at 61,821.87 points.
The broader NSE Nifty advanced 22.80 points or 0.12 percent to 18,287.20 points.
According to exchange data, Foreign Institutional Investors (FIIs) were net buyers in the capital markets on May 8, purchasing shares worth Rs 2,123.76 crore.
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