Rupee trades lower at 76.38 at per dollar

Indian rupee is trading lower at 76.38 per dollar amid volatile trade seen in the domestic equity market.

It opened marginally lower at 76.31 per dollar against Monday's close of 76.24.

On April 27 the rupee ended higher by 21 paise at 76.24 per dollar against Friday's close of 76.45.

At 11:13 IST, the Sensex was up 53.61 points or 0.17% at 31796.69, and the Nifty was up 15.50 points or 0.17% at 9297.80.

Oil fell on Tuesday, adding to huge declines in the previous session, on worries about limited capacity to store crude worldwide and expectations that fuel demand may only recover slowly as coronavirus pandemic restrictions are gradually eased.

"Strong rebound in domestic equities and a decline in the dollar index has led to a corrective move in the USDINR pair at the beginning of the current week, where the level of 77 is restricting further upside in the pair," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.

"Risk appetite in the market has got a lift as the RBI has come to ease the stress in the mutual fund industry, through its announcement of a special liquidity facility of up to 500 billion rupees. This may pave the way for some more downside in the pair towards 75.70 mark."

"However after some respite, the USDINR pair will again entice buying interest as the coronavirus contagion worries engulfing the global economy continue to dominate the overall landscape, steering it on an upwards incline," she added.

Gold fell on Tuesday as risk appetite was boosted by plans of some countries to ease coronavirus curbs in a phased manner, but prices held above the key $1,700 per ounce level amid hopes for more stimulus to cushion the fallout from the pandemic.