Mumbai, March 30 (PTI) The Indian rupee dropped 34 paises to 72.85 against the US dollar on Tuesday as trading began on Tuesday as rising crude oil prices and a strong US currency weighed on investor sentiment.
On the interbank foreign exchange market, the local unit opened at 72.85 against the US dollar, which recorded a decrease of 34 paise compared to the previous close.
On Friday, the rupee settled against the US currency at 72.51.
The foreign exchange market closed on Monday due to Holi.
The Rupee started on a weaker note against the US dollar this morning as risk appetite in the broader financial markets declined and a stronger setback, Reliance Securities said in a research note.
On top of that, most of the Asian currencies were weak this morning and will weigh sentiments.
Meanwhile, the dollar index, which compares the strength of the dollar to a basket of six currencies, rose 0.01 percent to 92.94.
The US dollar was equal to the currency in Asian trade. However, the downside may be limited amid an increase in treasury yields, as accelerated vaccinations and major stimulus in the US are causing inflation problems, ”reads the Reliance Securities note.
Brent crude futures, the global oil benchmark, rose 0.11 percent to $ 65.05 a barrel.
In terms of the local stock market, the 30-share BSE benchmark Sensex traded 760.39 points higher at 49,768.89, and the broader NSE Nifty advanced 233.40 points to 14,740.70.
Foreign institutional investors were net sellers in the capital market as they offset shares worth 50.13 million on Friday.
Source: Telangana Today