Rupee slumps 32 paise to 74.63 against US dollar in early trade

The Indian rupee depreciated 32 paise to 74.63 against the US dollar in opening trade on Tuesday, tracking the strength of the American currency in the overseas market and a muted trend in domestic equities.

Forex traders said rising crude oil prices and risk-off sentiments could weigh on investor sentiment and drag down the local unit.

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At the interbank foreign exchange, the rupee opened on a weak note at 74.63, registering a decline of 32 paise from the last close. On Monday, the rupee had settled at 74.31 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.22 per cent to 93.98.

The Indian rupee opened weak this Tuesday morning against the dollar, tracking the strength of the greenback, said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Additionally, strengthening crude oil prices and risk-off sentiments could weigh on the markets, he said.

Most emerging market and Asian currencies have started weaker this Tuesday morning and will weigh on sentiments, Iyer noted.

Foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth Rs 860.50 crore, as per exchange data.

On the domestic equity market front, the 30-share Sensex was trading 107.03 points or 0.18 per cent lower at 59,192.29. The broader NSE Nifty was trading 22.50 points or 0.13 per cent down at 17,668.75.

Global oil benchmark Brent crude futures advanced 0.23 per cent to USD 81.45 per barrel.