Rupee slips 10 paise to 77.78 against US dollar in early trade

Mumbai: The rupee slipped 10 paise to 77.78 against the US dollar in early trade on Thursday, as elevated crude oil prices and persistent foreign capital outflows weighed on investor sentiments.

At the interbank foreign exchange, the rupee opened at 77.74 against the American dollar, then lost ground to quote at 77.78, registering a fall of 10 paise from the last close.

On Wednesday, the rupee recovered from its record low to close 10 paise higher at 77.68 against the American currency.

Rupee is hovering around its lifetime low of 77.78 against the US dollar tracking the strength of the American currency in the overseas market and firm crude oil prices.

Rupee opened on a bearish note as crude oil neared USD 125 per barrel, Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, said.

“Only RBI is supporting the rupee while the flows have totally dried out. Foreign Portfolio Investors (FPIs) continue the sell-mode for equities and buy-mode for US dollar,” Bhansali said.

Moreover, Asian currencies are trading on a weak note, Bhansali said, adding that there is “no effect of a rate hike by RBI on Wednesday on the rupee as buyers of the dollar are in abundance.” Global oil benchmark Brent crude futures rose 0.26 per cent to USD 123.90 per barrel.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01 per cent lower at 102.52.

On the domestic equity market front, the 30-share Sensex was trading 163.34 points or 0.30 per cent lower at 54,729.15, while the broader NSE Nifty declined 41.00 points or 0.25 per cent to 16,315.25.

Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 2,484.25 crore, as per stock exchange data.