In early trading, Rupee declines 13 paise to 79.58/$

12 Jul 2022 , 10:19 AM

Early on Tuesday (12-07-2022), the rupee dropped 13 paise to 79.58 versus the US dollar as investor mood was dampened by the strong US dollar abroad and declines in local stock prices.

Additionally, ongoing withdrawals of foreign funds and high crude oil prices maintained pressure on the local currency, according to forex brokers.

The rupee depreciated 13 paise from its previous close to quote at 79.58 at the interbank foreign exchange, down from 79.55 when it first started. The beginning trading of the local currency versus the US dollar saw a high of 79.55 and a low of 79.62.

The rupee had already reached an all-time low against the dollar in the previous session, closing at 79.45. The 30-share Sensex was down 259.08 points, or 0.48 percent, at 54,136.15 on the domestic stock front, while the larger NSE Nifty was down 83.25 points, or 0.51 percent, at 16,132.75.

The dollar index, which measures the strength of the dollar against a basket of six different currencies, increased 0.27 percent to 108.31. Benchmark Brent crude futures for world crude oil fell 1.48 percent to US$105.52 a barrel.

According to exchange statistics, foreign institutional investors sold shares worth Rs 170.51 crore on Monday, making them net sellers in the capital market.

In light of the growing interest in the home currency among the international trading community, the Reserve Bank instructed banks to set up extra provisions for export and import operations in the Indian rupee on Monday (11-07-2022).