Rupee slips 11 paise to 74.16 against US dollar in early trade

The Indian rupee depreciated by 11 paise to 74.16 against the US dollar in opening trade on Wednesday, tracking a lacklustre trend in the domestic equity market and firm American dollar.

At the interbank foreign exchange, the rupee opened on a weak note at 74.11, then fell further to 74.16, registering a decline of 11 paise from the last close.

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On Tuesday, the rupee had closed at 74.05 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.08 per cent to 94.03.

"As the inflows in the two IPOs getting subscribed are tepid, the dollar rupee was bought yesterday from 73.86. Today, there could be outflows of Nykaa and may be some inflows of Paytm," said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

Bhansali further said that "importers to keep buying near to 74.00 and below. Exporters will wait for 74.40 and 74.50 before they begin to sell."

Global oil benchmark Brent crude futures advanced 0.29 per cent to USD 85.03 per barrel.

Moreover, foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 2,445.25 crore, as per exchange data.

On the domestic equity market front, the 30-share Sensex was trading 286.21 points or 0.47 per cent lower at 60,147.24, while the broader NSE Nifty declined 84.40 points or 0.47 per cent to 17,959.85.