Rupee opens 5 paise lower at 73.89 per dollar

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The Indian rupee opened 5 paise lower at 73.89 per US dollar on December 23 against the previous session's close of 73.84 per dollar.

The Indian unit opened weak against the US dollar as the risk appetite of investors remained fragile due to a new coronavirus strain found in the UK.

Brokerage firm ICICI Direct pointed out that the dollar held gains against major peers in the holiday season. A cautious approach would be adopted on the fast-spreading Covid variant, which would keep risk aversion assets in demand.

"Due to elevated levels of the Dollar index, which is finding strength on the back of risk aversion, we feel the rupee would continue to depreciate. However, it is likely to consolidate near 74 levels in today’s session," said ICICI Direct.

The dollar-rupee December contract on the NSE was at 73.94 in the last session. The open interest remained almost flat for the December series contract, the brokerage firm added.

Indian equities saw gains in early trade and the benchmark Sensex rose over 100 points supported by gains in shares of select heavyweights, including Infosys, TCS, Bajaj Finance, Maruti Suzuki and Mahindra & Mahindra.