Stock market updates: Rupee slips 3 paise to 92.43 against US dollar in early trade

The rupee opened at 92.42 against the dollar before slipping to 92.43. Representational Pic

The rupee fell 3 paise to 92.43 against the US dollar in early trade on Wednesday, weighed down by FII outflows and a stronger greenback amid the ongoing conflict in West Asia.

A decline in global crude oil prices and a positive opening in domestic equity markets prevented a sharper fall in the local currency, according to forex traders.

At the interbank foreign exchange, the rupee opened at 92.42 against the dollar before slipping to 92.43, down 3 paise from its previous close.

On Tuesday, the domestic unit hit an intra-day low of 92.47 against the dollar before settling at a record low of 92.40, down 12 paise from the previous close.

"The rupee has been in a range for the past few days, with 92.50 being protected by the Reserve Bank. However, FIIs and oil companies are consistently buying dollars," said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

Foreign institutional investors sold equities worth ₹4,741.22 crore on a net basis on Tuesday, according to exchange data.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent higher at 99.60.

Brent crude, the global oil benchmark, was trading 1.32 per cent lower at USD 102.0 per barrel in futures trade.

"The Middle East conflict has not improved and has kept oil prices above USD 100. The dollar index also remains firm at 99.50, though it has been unable to cross the 100.50 mark," Bhansali added.

On the domestic equity front, the Sensex rose 373.53 points, or 0.49 per cent, to 76,444.37, while the Nifty gained 114.40 points, or 0.49 per cent, to 23,695.55.

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