Mumbai: The Indian rupee reversed its nine-day upward movement and depreciated against the US dollar in early trade on Tuesday. As per market experts, strengthening of American currency against major its overseas rivals, volatile crude oil prices and subdued equity market sentiment weighed upon the Indian currency.
At the interbank foreign exchange, the domestic currency opened weak at 82.95, and slipped further to 82.97 against the US dollar in initial trade, registering a loss of 11 paise from its previous close.On Monday, the Indian rupee settled with a gain of 9 paise at 82.86 against the US dollar. This was the ninth consecutive day of gain for the Indian currency. In the last nine trading sessions, the local currency has added 46 paise since recording the level of 83.32 against the dollar on January 2.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.31 per cent higher at 102.63 on Tuesday.
Foreign Institutional Investors (FIIs) were net buyers in the Indian equity market on Monday as they bought shares worth Rs 1,085.72 crore. Official data released showed the wholesale price index (WPI)-based inflation rose to 0.73 per cent in December, due mainly to a sharp rise in food prices. WPI inflation was in the negative zone from April to October and had turned positive in November at 0.26 per cent.
Retail inflation also soared to a four-month high of 5.69 per cent in December, while industrial production fell to an eight-month low of 2.4 per cent in November.
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