The Indian rupee fell 6 paise to 77.50 against the US dollar in early trade on Wednesday. The rupee opened at 77.57 against the US dollar and then rose slightly to reach 77.50 on the interbank exchange.
The rupee had settled at 77.44 against the US dollar in the previous session, with the dollar index trading at 103.47, up 0.11 per cent. The 30-share Sensex traded up 155.56 points, or 0.29 percent, at 54,474.03, while the Nifty rose 26.50 points, or 0.16 percent, to 16,285.80.
The domestic currency was affected by the rise in global crude oil prices but remained silent for a positive opening in the domestic equity market. Wholesale price-based inflation (WPI) reached 15.08 per cent in April. Prices of vegetables and fruits rose due to the heat wave.
Brent crude futures rose $ 113.08 a barrel in early Asian trade on Wednesday in hopes of recovering demand in China as the country slowly eased its COVID-19 controls. Foreign institutional investors (FIIs) have become net sellers in the capital market as they have offloaded shares worth Rs 2,192.44 crore, according to news agency PTI.
The RBI also became the net seller of dollars in March after selling $ 24,416 billion on a net basis in the spot market. The central bank bought $ 4,315 billion from the spot market and sold $ 24,416 billion, according to the central bank’s May monthly bulletin.
(With agency input)