Indian rupee, the domestic currency opened on a flat note and depreciated by 3 paise to 73.18 per dollar on Thursday's opening trade, tracking the muted opening in domestic equities and weak Asian currencies. However, FPI inflows kept the losses capped.
The domestic unit opened at 73.18 per dollar at the interbank forex market, falling 3 paise over its previous close.
On Wednesday, the rupee had closed 10 paise higher at 73.15, supported by weakness in the greenback overseas, continued FPI inflows and recovery in other Asian currencies.
Reliance Securities said in a research note said,"FPI flows into the domestic equity markets could lift sentiments. RBI's presence could cap gains."
Meanwhile, the dollar index, rose marginally by 0.04 per cent to 90.39 against a basket of six currencies.
The euro, the sterling and the Japanese yen were flat against the US dollar this morning in Asian trade.Traders said investors remained cautious and await the US stimulus details as President-elect Joe Biden, who will outline his plans for massive fiscal stimulus today. Market participants are also looking for cues from the speech from Fed Chief Jerome Powell tonight.
On the domestic equity market front, market indices traded on a bearish note on Thursday, amid heavy selling pressure in IT and metal stocks, tracking cues from mixed global equities. Extending losses for the second trading session, Sensex was down 99 points to 49, 393 and Nifty fell by 31 points to 14,533.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,879.06 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,370.17 crore in the Indian equity market on 13 January, provisional data showed.
Brent crude futures, the global oil benchmark, fell 0.32 per cent to USD 55.88 per barrel. Oil price eased a bit backed by larger than expected drop in US crude inventories but concern over demand due to rising covid-19 cases restricted big decline.
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