The rupee fell 7 paisa to 83.84 against the US dollar at opening trade on Wednesday, reflecting a slump in the domestic equity market and continued foreign capital outflow.
However, currency traders said a weaker US dollar and falling oil prices supported the greenback and prevented it from falling too quickly.
At the interbank forex market, the rupee opened weakly at Rs 83.79 against the dollar and later fell further to Rs 83.84, down Rs 7 from the previous closing price of Rs 83.77.
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The rupee closed 10 paisa higher at Rs 83.77 against the US dollar on Tuesday, after rising by eight paisa the previous day.
Meanwhile, the Dollar Index, which gauges the greenback’s strength against six currencies, rose 0.02% to trade at 101.31.
Analysts said the dollar index was at its lowest in seven months due to concerns over U.S. PMI data due later this week and Federal Reserve Chairman Powell’s speech at the Jackson Hole Symposium.
Brent crude, the global oil benchmark, fell 0.17% to $77.07 per barrel.
On the domestic equity front, the Sensex index fell 24.50 points or 0.03 percent to 80,778.36 points while the Nifty index remained almost unchanged at 24,699.55 points.
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday, selling shares worth Rs 1,457.96 crore, according to exchange data.
