Rupee sheds 14 paise to hit 82.35 against dollar at the start of the day

India's inflation, IIP and manufacturing output are due today, while the more important FOMC minutes are scheduled for late evening.

PTIUpdated: Wednesday, October 12, 2022, 10:29 AM IST
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The rupee depreciated 14 paise to 82.35 against the US dollar in the morning trade on Wednesday amid the strengthening of the American currency and sustained foreign fund outflows.

Moreover, risk aversion sentiment among investors and weak Asian and emerging market currencies weighed on the local unit.

At the interbank foreign exchange, the domestic unit opened at 82.32 against the dollar, then lost further ground to 82.35, registering a loss of 14 paise over its previous close.

In a highly volatile session, the local unit also touched 82.28 against the American currency in initial deals. On Tuesday, the rupee rebounded from its all-time low to close 19 paise higher at 82.21 against the US dollar.

"Most Asian and emerging market peers were weaker this Wednesday and will weigh on sentiments," Sriram Iyer, Senior Research Analyst at Reliance Securities said, adding that investors will remain cautious ahead of the release of key domestic macro data.

India's inflation, IIP and manufacturing output are due today, while the more important FOMC minutes are scheduled for late evening.

"Investors will also await a key US inflation report tomorrow that is expected to influence the Federal Reserve's monetary policy stance," Iyer said, adding that the RBI will remain proactive if the rupee's volatility increases during the day.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.23 per cent to 113.48. Brent crude futures, the global oil benchmark, fell 0.67 per cent to USD 93.66 per barrel.

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