Rupee depreciates 4 paise to 82.41 against US dollar in early trade

The rupee depreciated 4 paise to 82.41 against the US dollar in early trade on Thursday, as weak Asian peers and strong American currency weighed on investor sentiments. Forex traders said a positive trend in domestic equities supported the local unit and restricted the depreciating bias.

At the interbank foreign exchange, the domestic unit opened at 82.36 against the dollar, then fell to 82.41, registering a decline of 4 paise over its last close.

On Wednesday, the rupee settled at 82.37 against the dollar.

The Indian rupee opened marginally weaker against the greenback this early Thursday morning as hawkish Fed speak, weak Asian peers and slightly stronger oil prices weighed on sentiments, Sriram Iyer, Senior research analyst at Reliance securities, said.

However, hopes of a deal on the debt ceiling could calm investors' nerves and aid sentiments, Iyer said, adding that the Reserve Bank of India's presence could not be ruled out to curb excess volatility.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 102.91. Brent crude futures, the global oil benchmark, fell 0.26 per cent to USD 76.76 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 211.39 points or 0.34 per cent higher at 61,772.03. The broader NSE Nifty advanced 59.15 points or 0.33 per cent to 18,240.90.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they purchased shares worth Rs 149.33 crore, according to exchange data.