Rupee slips 12 paise to 74.54 against US dollar in early trade

The Indian rupee depreciated by 12 paise to 74.54 against the US dollar in opening trade on Wednesday, tracking stronger American currency in the overseas market.

At the interbank foreign exchange, the rupee opened on a weak note at 74.53, then lost further ground and touched 74.54 against the American dollar in initial deals, registering a decline of 12 paise from the last close.

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On Tuesday, the rupee had closed at 74.42 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.06 per cent to 96.55.

Global oil benchmark Brent crude futures declined 0.07 per cent to USD 82.25 per barrel.

Asian currencies are trading slightly weak and European currencies continue to languish lower as coronavirus fresh cases and US rate hike prospects keep dollar higher, said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

According to Bhansali, the rupee is likely to move within a range of 74.30 to 74.70 during the day.

"Exporters may either sell for cash or very near term or far term and keep positions for medium term open targeting 75.00 at least. Importers to hedge at 74.30 and 74.40 levels," he said.

Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 4,477.06 crore, as per exchange data.

On the domestic equity market front, the 30-share Sensex was trading 95.59 points or 0.16 per cent higher at 58,759.92, while the broader NSE Nifty advanced 39.40 points or 0.23 per cent to 17,542.75.