Rupee falls 10 paise to 73.94 against US dollar in early trade

MUMBAI: The rupee slipped 10 paise to 73.94 against the US dollar in opening trade on Tuesday, tracking muted domestic equities. At the interbank forex market, the domestic unit opened weak at 73.94 against the greenback, showing a fall of 10 paise over its previous close.

On Monday, the rupee had settled at 73.84 against the US currency. "Market participants continue to re-adjust their positions ahead of the US presidential elections. Risky bets are being taken off the table. Overall mood is that of caution," said Abhishek Goenka, Founder and CEO, IFA Global.

Goenka further added that markets are unnerved by lack of progress on fiscal stimulus, rising corona cases in Europe and the US and the latest escalation in US-China tensions.

"China's plan to sanction Boeing Defense, Lockheed Martin over arms sales to China has also spooked investors. Turkish lira depreciating past the 8 mark against the US dollar has skewed sentiment against EM currencies," he said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10 per cent to 92.95. On the equity market front, BSE index Sensex was trading 11.80 points higher at 40,157.30, and the broader NSE Nifty advanced 20.55 points to 11,788.30.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 119.42 crore on a net basis on Monday, according to exchange data. Brent crude futures, the global oil benchmark, increased 0.57 per cent to USD 40.69 per barrel.