The Indian rupee slumped 9 paise to 73.18 against the U.S. dollar in opening trade on June 3 tracking strengthening of the American currency in the overseas market.
Market participants remained vigilant ahead of Reserve Bank of India (RBI) monetary policy meeting outcome scheduled to be announced on Friday, Forex traders said.
At the interbank foreign exchange, the domestic unit opened lower at 73.17 against the dollar, and lost further ground and touched 73.18, registering a fall of 9 paise over its previous close.
On Wednesday, the rupee had settled at 73.09 against the U.S. dollar.
Most Asian currencies have started mostly flat to marginally stronger against the U.S. dollar this morning and could lend support, Reliance Securities said in a research note.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06% to 89.96.
Global oil benchmark Brent crude futures advanced 0.62% to $71.79 per barrel.
On the domestic equity market front, BSE Sensex was trading 309.99 points or 0.60% higher at 52,159.47, while the broader NSE Nifty advanced 85.90 points or 0.55% to 15,662.10.
Foreign institutional investors were net buyers in the capital market on Wednesday as they purchased shares worth ₹921.10 crore, as per exchange data.
Meanwhile, with 1,34,154 fresh cases, India's COVID-19 tally has climbed to 2,84,41,986, while the daily positivity rate has further dropped to 6.21%, the Health Ministry said on June 3.