Mumbai, March 18 The rupee fell by 3 paise to 92.43 against the US dollar in early trade on Wednesday, weighed down by outflows from foreign investors and a stronger dollar amid the ongoing conflict in the Middle East.
According to forex traders, a decline in global crude oil prices and a positive opening in the domestic equity markets prevented a sharper fall in the local currency.
At the interbank foreign exchange market, the local currency opened at 92.42 against the dollar before falling to 92.43, down 3 paise from its previous close.
On Tuesday, the local currency hit a low of 92.47 against the dollar before closing at an all-time low of 92.40, down 12 paise from its previous close.
"The rupee has been trading in a range in recent days, with the Reserve Bank protecting it at 92.50, but foreign investors and oil companies are consistently buying dollars," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
According to exchange data, foreign institutional investors sold equities worth Rs 4,741.22 crore on Tuesday.
Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, was trading 0.03 per cent higher at 99.60.
Brent crude, the global oil benchmark, was trading 1.32 per cent lower at USD 102.0 per barrel in futures trade.
"The conflict in the Middle East has not improved, and has kept oil prices above USD 100, while the dollar index remains well bid at 99.50, although it has not yet crossed the 100.50 mark," Bhansali said.
On the domestic equity market front, the Sensex rose by 373.53 points, or 0.49 per cent, to 76,444.37, while the Nifty rose by 114.40 points, or 0.49 per cent, to 23,695.55.
