The rupee had a slow start to the new year, losing 14 paise to end the day at 82.75 against the US dollar on Monday as rising crude oil prices and ongoing outflows of foreign funds dampened investor confidence.
Forex traders claimed that increases in crude oil prices and persistent outflows of foreign funds offset the assistance provided by strong domestic equities and a weak American dollar.
At the interbank foreign exchange market, the rupee opened lower at 82.66 against the greenback and witnessed an intra-day high of 82.56 and a low of 82.78.
It finally settled at 82.75, down 14 paise over its previous close.
On the last trading day of 2022, the rupee had settled at 82.61.
"The Indian rupee started the first trading day of the new year with a small loss as many markets remained closed on account of the New year Holiday.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.30 per cent lower at 103.52.
Global oil benchmark Brent crude futures rose 2.94 per cent to USD 85.91 per barrel.
The 30-share BSE Sensex ended 327.05 points or 0.54 per cent higher at 61,167.79, while the broader NSE Nifty climbed 92.15 points or 0.51 per cent to 18,197.45.
Foreign institutional investors (FIIs) remained net sellers in the capital market on Friday, as they offloaded shares worth Rs 2,950.89 crore, as per stock exchange data.
With inputs from Agencies.
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