The Indian rupee is trading at 78.04 against the US dollar, down 6 paise

21 Jun 2022 , 10:29 AM

In early trade on Tuesday, the rupee fell 6 paise to 78.04 against the dollar, as continued foreign fund outflows and robust dollar demand globally impacted investor confidence.

The rupee began at 78 versus the dollar on the interbank foreign exchange, before losing further ground to quote at 78.04, a drop of 6 paise from the previous close.

Brent crude futures slid 0.91% to USD 115.17 a barrel, the global benchmark. In the meantime, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.36% at 104.32.

On the domestic front, the 30-share Sensex was up 354.27 points, or 0.69%, at 51,952.11, while the wider NSE Nifty was up 113.80 points, or 0.74%, at 15,463.95. The rise was accompanied by huge intraday volatility on either side. According to stock exchange data, foreign institutional investors were net sellers in the capital market on Monday, offloading shares worth Rs1,217.12 crore.

The selling of FIIs and their withdrawal of funds hampers the Indian rupee. If they were selling certain shares and reinvesting in others within the country the problem wouldn’t be as bad.