The rupee depreciated 16 paise to 73.95 against the US dollar in opening trade on Tuesday tracking muted domestic equities and weakened risk appetite amid concerns about a new virus strain.
Traders said rupee is trading on a weak note against the US dollar as the greenback rebounded amid safe haven appeal for the currency.
At the interbank forex market, the domestic unit opened at 73.95 against the US dollar, registering a fall of 16 paise over its previous close.
On Monday, the rupee plunged 23 paise to end at a two-week low of 73.79 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.26 per cent to 90.27.
"The risk sentiment was jolted by the news of a new strain of virus emerging in the UK and consequently about 40 countries imposing bans on flights arriving from the UK," said Abhishek Goenka, Founder and CEO, IFA Global.
The variant, which officials say is up to 70 per cent more transmissible than the original, triggered concerns about a wider spread which has prompted several European countries to take measures to prevent people arriving from Britain, including bans on flights and trains, Reliance Securities said in a research note.
Further, Asian currencies were weak this morning and could weigh on sentiments, the note added.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 6.65 points lower at 45,547.31 and the broader NSE Nifty fell 2.10 points to 13,326.30.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 323.55 crore on a net basis on Monday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.51 per cent to USD 50.56 per barrel.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU